Versarien #Gold #SP500 April appears to have started with positive feeling across the market place. Of course, it could be an elaborate practical joke by politicians, designed to obscure the slightly important detail they are failing to govern the country. Are they really voting to decide whether to have a vote about a vote? The TV show, “Yes, Minister” seems now a work of documentary.
When we last reviewed Versarien in February (link here), we’d speculated on the potential of them dropping to 62p. The intervening period highlights the share price “only” relaxed to 67p before exhibiting a reasonable bounce with the result, some optimism is possible for the future.
The immediate situation appears quite straightforward.
Price growth exceeding 120p should now make an attempt at an initial 125p. Visually, the price has form at this level, suggesting some sort of stumble awaits. Longer term, in the event it manages above 125p, we’re calculating a secondary at 145p, along with the potential for future game changing growth.
We’re pretty comfortable proposing a glass ceiling awaits at 125p, if only due to the whole bunch of folks trapped at this level since October last year and exercising common sense to bail at break even. This, alone is pretty certain to cause a stutter. Of course, there is also the bunch of folk who can draw lines, assuming the price is about to hit this mythical thing called resistance. With closure above 125p, we’d take this as early warning for longer term growth above the 125p “glass ceiling”.
The share needs wither below 100p to justify raised eyebrows, once again entering a weakness cycle with 60p calculating as the next target. If broken, it should bottom at 53p.