88 ENERGY (LSE:88E)
Presumably this lot issued some grotty news. Last time we commented on 88 Energy (88E), we gave 3.45p and 3.85p as upward targets, both of which were achieved. Then it fell off a cliff!
Thankfully, there’s something a bit puzzling about the drop as we would have expected the share to reach 0.37p and bounce. Instead, it appears the market is making an effort to ensure it does not fall below 0.825p, so perhaps some hope remains.
The current situation is fairly interesting as there’s an immediate trendline sitting at 1.4p currently (blue line on the chart), and the share only requires better this to suggest it has very probably bottomed.
In such an instance, we’re looking for near-term oomph toward 1.625p initially which, to be honest, is fairly rubbish. However, in the event of it trading above 1.625p, we’re a touch more optimistic as 2.35p is our secondary calculation.
At this point, it becomes crucial the share price actually manages to close above 2.2p as we can cough politely and suggest crossing fingers for a decent flow of news from the company, which should prove capable of pushing a somewhat distant sounding 3.2p!
Finally, we’ve opted to show a discrete dashed ‘light blue’ downtrend which dates back to 2012. Currently, this is sitting at 2p and almost certain to provide some sort of interruption in a rising phase.
This trend line, coupled with the prior highs, is creating a situation in the 2-2.2p range, one almost certain to end up creating some sort of future glass ceiling.
Despite the fact we’ve mentioned 3.2p in the future! Sometimes it’s worth paying attention to common sense. Currently trading around the 0.9p level, we suspect this shall prove worth keeping an eye on fairly soon.
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.
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