DRAX for 9/05/2019

#France #Nasdaq We’re not jumping on the Marvels Avengers bandwagon, despite one of their characters being ‘Drax’. A Google search for ‘Drax’ did turn up the bonkers statistic shown below. Just 15 ships produce more pollution than ALL cars, worldwide, but instead, people protest Drax providing wood pellets for fires! As for Drax’ share price…

We last reviewed DRAX in August last year (link here) and pleasingly, it achieved our initial growth target. What happened was quite strange. We’d written a target of 403 in the report, yet the published chart cheerfully gave the target at 423p. Despite both the erroneous 403 AND the correct 423 being attained, our often repeated insistence a share price actually close above a target level was highlighted clearly, when reviewing the Candles vs Closing Price charts. Unfortunately, in this instance, we got it a little wrong as despite the price actually closing 4p above our target level on two occasions, the price has reversed more than we would like.

However, a glance at the bigger picture tends indicate the threat of reversal should not prove too devastating. The immediate situation is of weakness below 322p opening the gates which permit reversal down to 263p. We would anticipate a bounce, should such a level appear. An initial ambition, doubtless a longer term one, calculates at 392p. If bettered – definitely with closure above, our secondary is at 564p eventually.

There’s the risk of a real problem, if the price somehow winds its way below 263p. Our secondary, challenging the long term uptrend, calculates at 236p. In itself, this isn’t great visual problem but unfortunately, 236p making an appearance totally fouls our upward target calculations and risks the share price becoming range-bound for a while.

For now, our suspicion is of this proving worth watching for 263p eventually making an appearance.

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

9:03:08PM

BRENT

70.03

               

9:06:01PM

GOLD

1280.81

               

Success

9:09:31PM

FTSE

7287.18

               

‘cess

9:25:00PM

FRANCE

5415.2

5364

5345

5289

5452

5431

5441

5467

5375

9:26:53PM

GERMANY

12216.87

               

Success

9:29:24PM

US500

2887.17

               

9:31:42PM

DOW

26052.4

               

Shambles

9:34:09PM

NASDAQ

7634.37

7590

7567.5

7530

7670

7687

7711

7758

7605

Shambles

9:37:48PM

JAPAN

21525

               

8/05/2019 FTSE Closed at 7271 points. Change of 0.15%. Total value traded through LSE was: £ 6,685,988,322 a change of -11.16%

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