Is this small-cap worth testing?

Reneneuron Group (LSE:RENE)

Share price movements here risk proving similar to the new Marvel Avengers movie, essentially incomprehensible and capable of leaving those involved somewhat underwhelmed. Why didn’t they mention the film was Episode 1 of a series?

Against Reneuron (RENE), we’re able to calculate a bottom at 25.75p, this hopefully providing the end game for a series of share price movements with similar plot difficulty to the aforementioned film. Below 25.75p and we’re not able to calculate a bottom without prefacing the results with minus signs. Normally it’s reasonable to anticipate some sort of bounce at such a target level.

If we opt to pretend confidence in the down trend since the share price was “rescued” by a 100:1 split, the scenario does exist of movement above the dashed blue line – currently 79p – being apparently capable of growth to 89p. If bettered, a longer term secondary calculates at 134p with the potential of a bonk against the downtrend in blue which dates back to June 2015. Only with closure above blue shall we feel able to mention some amazing recovery potentials at 205p initially followed by a longer term 274p.

For now though, we suspect its going to make an attempt at our bottom target. In an ideal world, it will rebound before such a doom is reached.

To clarify, spending 150 minutes watching a film which struggled to find an ending was annoying. At least they avoided tacking on the East Enders “dum dum dum dum & dumber” cliff-hanger music to the end. The experience left a residual impression of Marvel attempting to bring their TV series method to the big screen. Instead of providing a break from market analysis, a longing to get back to work ensued.

Finally, for those who emailed to ask about RENE, sorry to complain about a film. Going to the cinema in daytime, prior to producing this report, was probably not the wisest move.

Source: interactive investor             Past performance is not a guide to future performance

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.

Source.