Zoo Digital #DOW #CAC40 Accidentally cutting your wrist at 2am always leads to a fun household. A chicken pox issue, going since last October, left hard lumps, very itchy hard lumps. Absently digging at one, there was a realisation the “lump” was 99% old tissue which could be prised off. Then it started to bleed – a lot – an awful lot. Waking wife, clenching a wrist, oozing blood between fingers, tends elicit hysterics and questions.
Which brings us neatly to Zoo Digital, along with a warning about picking at wounds!
There is always the temptation to try and pick bottom with shares and Zoo, presently, are flirting with some very real danger. At time of writing, the share is trading around 46.75p. From our perspective, it dare not break below 45.5p as this risks uncovering a painful scab, a move with greater potential for self harm than we’d expect. For the purposes of certainty (or as close to such as the market allows) we shall demand closure below 45.5p as providing breakage of the final straw but to be realistic, alarm bells would now ring if this trades an iota below 45.5p.
The danger?
Such a calamity enters a cycle toward an initial 18p and hopefully a bounce with some integrity. If broken, our secondary calculates at a bottom of 2.6p, something which is visually absurd despite being mathematically possible. It is vanishingly rare for us to propose a price reversal to 1/20th of current and we’re not comfortable doing so. But there’s little doubt the share requires above 64p just to regain the immediate uptrend – or above 82p to regain the “real” uptrend.
If it intends a bounce rather than break the 45.5p, and rebound exceeding 64 should prove capable of an initial 86p, along with some visual safety. If bettered, secondary calculates at 101p.
It’s worth watching but, as with any other share, it has dangers. Our reason for mentioning this one is fairly silly. Sometimes, the market appear to notice a share price skirting the edge of catastrophe and reacts, extremely positively, to remain the share from danger. Perhaps some research will make sense.
