Antrim Energy & the sceptic within

Friday, 1st August 2014 08:43 - by Osakisushi

As I constantly mention, I don’t do Fundamentals nor do I do Technicals. My bit is the Trend and nothing else. Now for the but…

But experience has made me somewhat leery of companies with Irish based names. Or nowadays, even Scottish ones which is a bit daft as I’m one of that accursed breed. But as soon as I come across and Irish sounding name, it’s treated with similar enthusiasm to that bloke in Nigeria who just emailed me and has US$7 million dollars of mine and wants to give it back.

So, lets look at the chart for Antrim and it tells the story of a share which has fallen from 4 quid down to just under 3p. Never an encouraging start but, to look on the bright side, there’s plenty of room for recovery. After all, ASOS went from 3p to 70 quid and Antrim might just be the next biggie.

Having spewed all my sarcasm available, I’ve got a little problem with this share as yes, it might just have some potential. The price has recently reacted to a trend dating from 2008 when the share was trading at over 2 pounds. Make no mistake, this is a big deal.

Usually when I run the numbers on these historical trends, a share will sleepwalk through any line on a chart but when something moves in accordance with a distant logic, it tends to mean the trend is real and viable.

As a reality check, it DOES NOT for a moment signal the share is about to move above 2 quid. That is now how real life works.

But the inset on the chart is blooming encouraging. The market moved the price above that Light Blue line, suggesting the start of a new trend which will probably ignore the last 18 months of absolute boredom.

For those who know how to read charts, sorry about this return to basics.

So, what’s next for Antrim? Will it reverse and fill the gap from 3.25 or power on up to the Blarney heavens? I’m not sure, is the answer. It might fill the gap but I don’t really care. I’ll be much more interested next time the price CLOSES above 6.2p as it will signal growth to 9.45 next with secondary, if bettered, at a longer term 12.5p.

Of course, if you are awaiting 2 quid and beyond, perhaps a trip to Scotland to buy some lucky white heather would work….

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.