Westminster's Complex Dance

Friday, 2nd May 2014 09:07 - by Osakisushi

A few weeks ago, I’d warned the folks in Premium Chat trading this to brace themselves for 54.75p and unfortunately, not only did the share reach my target bottom, it exceeded it intraday.

Thankfully the movement occurred with one of these despicable spikes just after the open and often, these shuffles are reversed with incredible accuracy.

In the case of LSE:WSK, it needs exceed 61.75p to convince me the price has doubtless bottomed as this allowed further growth to a more useful 67.5p.

Unfortunately, the share needs a bit more oomph than that. As the chart shows, the price is cheerfully trading below both BLUE and RED, now sitting in a zone where should 54.5p break again, I’d feel pretty certain it intends head to a hopefully bouncy bottom at 45.5p.

Is there a bright side?

BLUE on the chart is currently at 74p and nothing is currently signalling it is in danger of being troubled. But when I break movements down over the most recent 15 sessions, I note I can calculate a secondary should 67.5p be exceeded (by the price CLOSING above) at a breakout 81p. And this would move the share into a VERY strong position for the future.

But for the moment, I’ve little choice but to adopt reality and that’s to anticipate a bottom at 45.5p. Of course, someone, somewhere, could be adding the finishing touches to a game changing news report… That’s what we all hope for.

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.