Fevertree for 4/09/2019

#FTSE #DOW There is a 100% certainty an asteroid shall impact the Earth. As for when, that’s the big question as no-one can put a timeframe on it. Similarly with Fevertree, we’re pretty comfortable the price is going to head down. But again, the issue of timeframes arises! Thankfully, we can ameliorate the proposal by examining the logic behind the drop potentials.

Firstly, there’s the RED uptrend. The share has broken below RED and failed to close above the trend in the period since trend break. This is not encouraging and suggests the presence of weakness.

Secondly, perhaps more importantly, two quite separate Big Picture arguments calculate with a drop potential of 1212p. This is quite a scary proposition, not only allowing the price to nearly half from current but worse, it will reside in a zone where negative news allows an ultimate bottom at 159p!

Third, there’s the horizontal trend, something we increasingly trust. It’s painted on the chart as a Purple Dashed Line. (It might be Magenta, we’re still arguing)

The horizontal trend is at 2073p. In the event Fevertree closes below this line, we are inclined to view this as the final straw, expecting it to trigger reversal to an initial 1632p with secondary, when broken, down at 1212p. We would expect some sort of bounce at the 1632p level but if it breaks, any rebound risks being short lived.

To get out of trouble, Fevertree requires a miracle recovery above the historical RED uptrend. At present, this is around 2517p. Such a movement allows growth to an initial 2966p with secondary, if bettered, a happier looking 3372p.

 

FUTURES

Time Issued

Market

Price At Issue

Short Entry

Fast Exit

Slow Exit

Stop

Long Entry

Fast Exit

Slow Exit

Stop

Prior

10:15:34PM

BRENT

58.08

               

‘cess

10:17:51PM

GOLD

1547.55

               

Success

10:20:44PM

FTSE

7272.94

7206

7194

7153

7240

7317

7353

7403

7235

10:22:13PM

FRANCE

5472

               

Success

10:24:08PM

GERMANY

11926

               

10:26:13PM

US500

2904.82

               

10:33:57PM

DOW

26090

26058

25986.5

25797

26245

26286

26383.5

26521

26113

‘cess

10:35:49PM

NASDAQ

7615.14

               

10:37:48PM

JAPAN

20593

               

 

3/09/2019 FTSE Closed at 7268 points. Change of -0.18%. Total value traded through LSE was: £ 4,922,266,781 a change of 24.21%

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.