RE: Shorters must be closing6 Feb 2018 22:24
Will IQE shares find a bottom here? / Alistair Strang | Tue, 6th February 2018 - 9.28am
For some reason, IQE (IQE)was a share we were continually asked about during the Monday. It's 'one of ours' and quite oddly, managed to close the session at a target level we've been postulating for over a month. We're a little perturbed at the movement below 102p during the session as it hints, very dangerously, 87p should provide a bottom.
This notion worries as, especially as it risks challenging the red line on the chart, the immediate uptrend. The implication, should 'red' break, is of further dismal travel down to 57p, rather effectively undoing all the good work of the last year.
Who knows though, perhaps the low of 89p shall prove sufficiently close to our 87p calculation to promote a bounce?
In the event of the price managing a miracle above 112p, we'd view it as beating the immediate downtrend and capable of continuing growth to 116p. Then, it becomes a matter of where the price closes as above 116p and we're expecting future recovery toward 135p.
chart
http://www.iii.co.uk/sites/default/files/iqe.jpg