Where next for high-flying Tern?
21st June 2018 08:10
by Alistair Strang from Trends and Targets
TERN (LSE:TERN)
It would be correct to say we've received rather a few emails since our report on Tern published on the 11th June.
Yes, it achieved our 40.75p, exceeded it, and yes it gained our 54p. Also yes, it closed above 40.75p which allegedly makes the future safe!
But we're feeling extremely cautious, due to price movements since our secondary target success.
The blooming share price is behaving almost as if it does not wish to rise which seems a tad unfair, due to prior exuberance which conformed rather nicely with our calculations.
Obviously, it also confirmed our grasp of timeframes remains tenuous at best, making us wish every report blossomed with similar speed!
To get the positive news out of the way first, price movements served to indicate future growth above 57p should now prove capable of a an initial 63p, with secondary a presumably distant 81p.
In fact, closure above 63p will tend to suggest this has the potential of doubling in price.However, we remain unhappy with price movements since the 13th June and suspect the market plans give investors a run around the block prior to anything positive.
The immediate situation is of weakness below 29.5p pointing at travel to 27p and ideally a bounce.
Any bounce capable of bettering 40.25p will be deemed significant, allowing near term travel to continue toward 48p. Above this point, we shall be inclined to believe bottom is "in" with a reasonable anticipation of 63p making a guest appearance.
The issue which arises comes if 27p breaks as it's easy to speculate on continued weakness toward 20p. And if that breaks, we get to mention 7.5p which turns June's acrobatics into a "pump & dump".
For now, our suspicion is the market intends a bounce at the 27p level.
Lucky white heather, anyone?
Source: interactive investor Past performance is not a guide to future performance
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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