From Pro traders24 Sep 2021 11:57
Investors cheered the capital raising initiative, which valued Symphony Environmental’s shares at a premium, making the dilution of existing shareholders more manageable given the rally.
From a technical perspective, Symphony shares could not break above the 28.55p resistance level despite the new shares being sold at 30p each, indicating that sellers were willing to jump in and defend the level.
However, I believe that there is a good chance the shares will break above the level due to the warrants issued to Miss Lophia, which are priced at a significant exercise premium of 40p each. Investors looking to capitalise on such a move higher should look out for potential entries at current levels.
Time will tell !