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%