From a trader's POV29 Aug 2018 19:44
Hi all,
I have been charting this stock for the last few weeks, and see a few questions about why sells are being made at this level. I can't answer for everyone, but can answer for myself on why sells may be being made at this level.
I had personally been tracking a simple double bottom formation on this, then an ascending triangle on the 5 minute chart. This gave me targets of 2.25 (hit on Tuesday) and 2.42 (hit today) for both patterns. My mind tells me to sell out at these levels as I have already hit what I intended to do for the trade I was in, which I sold out today at 2.38 for around 25% more than I bought in for.
This is just how a technical trader would work with these numbers. One of my colleagues looking at this one has a target of 2.98p from his graph, which I can see being hit in the near future - however, given the level of constant 10% rises we have had since late last week today's was unable to hold at the 2.6p mark which was hit around 10:00, which suggests to me that for the interim period the buying momentum may have slowed for now, indicating a short pullback before the next rise, hence why I am happy to bank the profit I have already made and seek further guidance.
This is not a recommendation to sell however, more a sign that I am happy with what has been achieved with the recent rise, and will await direction from the market as to how to proceed. I could buy back in (and, indeed given the fundamentals on this share and predicted newsflow it is quite likely I will do so), but for now traders will see this as an opportunity to take stock of the market and see what will arise soon.
Bet of luck all as ever, I still see this as an excellent share to be in - but from a my own point of view it is now time to seek direction on where the market may move next.
Hope this helps somewhat :)
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