Should you buy, hold or sell this small-cap?

Rockhopper Exploration (LSE:RKH)

As politicians prove, constantly, you need to actually do something to become interesting. Though with column inches devoted to May, Trump, Corbyn, Cable, we could be fooled into believing politicians are hyperactive rather than media starved for copy!

Rockhopper (RKH), unfortunately, could lead a political party if its share price is anything to go by. In a few months, it will be two years without the price actually doing anything of note.

Most folk, suffering such extended periods of monotony, grow bored scanning their morning RNS reports, whereas we scribble lines in the hope of identifying the magic trend. To be honest, sometimes both efforts prove fruitless but, like RNS vultures, we never stop checking.

In the case of the penguin, there’s a reasonable chance it has not been nailed to its perch. It currently needs to exceed blue on the chart at roughly 26.357p to suggest some movement is coming.

A surge such as this should prove capable of growth to an initial 30p. Visually, this would prove “a good thing”, achieving a higher high than the last time the price bonked against blue and suggesting should 30p be bettered, continued growth toward 35p can be expected.

At such a point, we’d prefer to stir the tea leaves again as, while we can calculate beyond 35p, we’re not entirely comfortable with the projection strength.

For now, it’s pretty dismal and boring. Despite the red uptrend since 2017, we shall not be aghast to see it reverse to the 20p mark prior to any miracle bounces. Below 20p would be a bad thing, making 16p and below painfully possible.

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.

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