88 Energy (LSE:88E) and some GBP:USD thoughts too
88 Energy (88E) has featured in our email and it’s not hard to understand why. The share price appears to be adhering to some of our thoughts last year and an update appears merited.
For 88E, movements since August last year carry the suggestion a glass ceiling has formed at 2.9p and unusually, this bother us. Generally this “glass ceiling” nonsense does prove a reliable harbinger of good times ahead but in the immediate case, our software essentially is being cautious.
The suggestion given is not to trust a rise unless the price now starts trading above 3p as we’re looking for an initial 3.5p with secondary, if exceeded, at 4.5p and a pretty firm requirement we stir the tea leaves again.
- Plotting 88 Energy’s post-crash recovery
Our problem with the 2.9p glass ceiling hails back to all the circled manual manipulation gaps and the spanner they tend through in the works when trying to plot logical growth curves.
In the case of 88E, if we simply go by the point at which the share closed, we should be advising the price intends 4.5p as a major point of interest on the current cycle, requiring a slip below 2p to trash the potential. Long term above 4.5p and we can calculate 6.15p, but frankly these gaps bother us rather a lot.
Source: interactive investor Past performance is not a guide to future performance
This pairing is regarded currently as heading to $1.3090. It needs better than $1.3415 to trash the prospect, this being from a near term perspective.
From a big picture perspective, it actually needs above $1.42 before we cease expecting $1.3090 to make a guest appearance. Additionally, should $1.3090 break, it remains with a “must bounce (hopefully)” bottom at $1.24.
Alistair Strang has led high-profile and “top secret” software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know “how it worked” with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation, and is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company’s or index name highlighted in the article.