Positive thoughts from ii2 Aug 2022 09:38
This small-cap stock rocketed almost 400% in just a few months at the end of 2020. It's fallen back sharply since, but independent analyst Alistair Strang thinks the shares may be worth watching again.
AFC Energy
AFC
0.46%
appear to be doing solid work in the hydrogen fuel cell department, if their website is to be believed. Of all the green initiatives, anything which involves hydrogen, regarded as the most abundant element in the universe, deserves close attention.
Since 2009, AFC’s share price has enjoyed a rollercoaster ride, lots of false starts and sharp reversals tending to indicate they’ve been the focus of internet chatroom ‘enhanced optimism’ campaigns.
Even the recent surge to 92p in 2020 appears to be suffering the usual payback, the price currently at 26p and making us question whether the recent slip down to 19p shall be regarded as “bottom”. We certainly hope so as the only drop target we can now calculate below 19p is prefaced with a minus sign!
Our suspicion is the price has bottomed on the current cycle, making us think 28.5p can be viewed as a potential trigger, one which, if bettered, allows for gains in the direction of a near term 33p. In the event 33p is exceeded, our secondary calculates at 38p, returning the price above a prior, argumentative, uptrend.
Past performance is not a guide to future performance.
Thanks to AFC’s historical shenanigans, there are now some fascinating potentials we can give should 38p be exceeded sometime in the future.
Why reading charts can help you become a better investor
We could tie ourselves in knots trying to explain a stream of different numbers but, essentially, with closure above 38p, the share price makes a careful step into territory where a phase of growth to a future 115p calculates as possible, a new all-time high.
If we judge by the emails received, it appears a few folk think “something” is happening with AFC and, as a result, it’s probably worth keeping an eye on them.
Sign In
Follow the stocks
