Better times ahead for this struggling small-cap?
It's been a rotten 2024 for this company involved in the fight against cancer. Independent analyst Alistair Strang seeks signs of a reversal of fortune.
27th June 2024 07:47
by Alistair Strang from Trends and Targets
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I’m always fascinated by frontline life sciences companies such as Avacta Group (LSE:AVCT) and their constant battle to produce something new, effective, and priced properly.
Avacta touch upon this with the statement on their website; “Avacta seeks to create long-term shareholder value alongside patient benefit.“
The only problem with Avacta has been their dreadful share price history…
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There’s a visual impression that the recent visit to the 39p level shall maybe be regarded as a “double bottom”, matching the lows of 2022. There are early signs this may be the case, the share price recently breaking though the downtrend since October last year.
The current situation suggests movements in the near term above 51.3 should trigger price recovery to 57.6p. If bettered, our longer-term secondary is more interesting, calculating at 68.2p and giving the potential of the share price regaining the Red uptrend since 2020.
Generally, this is a pretty reliable signal for better times ahead, so hopefully the company has some miracles waiting to be revealed.
While the share price is no longer a falling knife, there’s still the unlikely risk of below 39p bringing a visit to 30p with secondary, if broken, at 15p.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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