For some reason, Versarien always seems lend itself to a “what happened next” report, literally with each scenario we publish. Our last review on 2nd April (link here) illustrates a slightly worrying situation. Visually the rise came extremely close to our 145 target but importantly, it neither hit nor exceeded our ambition.
Common sense alone suggests some patience, after all the share has only made one attempt at the target level. Generally, a price will exhibit a fascination with such a target level for quite a few sessions, essentially flirting with the target price. Our worry comes from the fact 145p remained unsullied at the first surge upward, despite the share price being also manipulated (gapped) upward at the open. In addition, we had two quite distinct formula pointing to 145p as a pretty major point of interest. The fact the price (so far) has avoiding this ambition perhaps implies weakness is present.
As a result, we’re inclined to look at reversal triggers before exploring future rise potentials.
The immediate threat is of weakness continuing below 130p bringing reversal down to an initial 122p. In the grand scheme of things, this does not present a particularly nasty threat but our secondary, if such a level breaks, is down at 103p and risks reversal below the immediate downtrend. This tends to be a dangerous movement from a big picture perspective. In reality, we’d hope for a genuine bounce if 122p makes a guest appearance.
Due to our perception of the share as showing weakness, we now demand it better 149p before taking further rises seriously. A move such as this calculates with an initial potential of 165p. If exceeded, our secondary calculates as a less believable 198p – suspicious only because it exceeds the high of 2018, in doing so requiring an entirely new game plan for the longer term.
For now, we shall not be aghast to witness the price at 122p, prior to another chapter unfolding for Versarien.
18/04/2019 FTSE Closed at 7459 points. Change of -0.16%.
Total value traded through LSE was: £ 4,520,206,795 a change of -18.65%