#France #Nasdaq Purple Bricks share joins a large club of shares, where we produced analysis (link) expressing unhappiness about their share price. What we don’t “get” is all this misery dated from 2019, well before the pandemic. It was almost as if the markets were awaiting an accident to happen, any accident! Very strange indeed. Regardless the sector, we’d noticed many shares feeling like they needed an excuse to jump off a cliff. We’re pretty sure no-one expected Covid-19 with the level of reversals sometimes breaking below our worst case scenarios.
Purple Bricks had calculated with a Big Picture bottom potential of 31p, a price level briefly exceeded on March 18th of this year. We could not comfortably calculate a point below 31p and the single day which reached 22p before a rebound wasn’t noticed, thanks to the riotous panic pervading wider markets. Our usual argument, if a price exceeds a drop target then any bounce risks being short lived is perhaps not valid against Purple but we shall review the miserable side of life, despite the break below 31p proving (thus far) to be a fleeting event. We can now calculate below 31p, thanks to movements since March 18th.
Price movement now below 29p looks capable of a downward drift to 20p next with secondary, if broken, at a bottom of 12.5p. Once again, we can pronounce an “Ultimate Bottom” for Purple and it’s at 12.5p. We cannot calculate below this level.
However, care has been taken to respect the 31p level, despite the little hiccup in march. The situation now appears to suggest any recovery exceeding 47p should hear to an initial 63p. Visually, this makes some sense. If exceeded, the longer term secondary works out at 108p and theoretically returns the price to the level at the start of the current disaster. With an additional 50,000 deaths in the UK, could this be a dreadful reflection of a surprise influx of property about to appear on the market?
|
Time Issued |
Market |
Price At Issue |
Short Entry |
Fast Exit |
Slow Exit |
Stop |
Long Entry |
Fast Exit |
Slow Exit |
Stop |
Prior |
|
10:02:43PM |
BRENT |
29.83 |
|||||||||
|
10:04:47PM |
GOLD |
1703.16 |
Success |
||||||||
|
10:06:39PM |
FTSE |
5888 |
Sorry |
||||||||
|
10:19:25PM |
FRANCE |
4412.2 |
4412 |
4400.5 |
4345 |
4490 |
4463 |
4476.5 |
4498 |
4444 |
‘cess |
|
10:22:05PM |
GERMANY |
10589.34 |
Success |
||||||||
|
10:24:11PM |
US500 |
2843.67 |
Success |
||||||||
|
10:27:39PM |
DOW |
23577 |
Shambles |
||||||||
|
10:40:59PM |
NASDAQ |
9067 |
9046 |
9012.5 |
8900 |
9106 |
9107 |
9116.5 |
9140 |
9057 |
Shambles |
|
10:43:33PM |
JAPAN |
20052 |
Success |
12/05/2020 FTSE Closed at 5994 points. Change of 0.93%. Total value traded through LSE was: £ 5,375,886,438 a change of -7.35%
11/05/2020 FTSE Closed at 5939 points. Change of 0.07%. Total value traded through LSE was: £ 5,802,382,632 a change of 2.67%
7/05/2020 FTSE Closed at 5935 points. Change of 1.4%. Total value traded through LSE was: £ 5,651,341,668 a change of -8.8%
6/05/2020 FTSE Closed at 5853 points. Change of 0.07%. Total value traded through LSE was: £ 6,196,887,003 a change of 18.35%
5/05/2020 FTSE Closed at 5849 points. Change of 1.67%. Total value traded through LSE was: £ 5,236,126,168 a change of -8.24%
4/05/2020 FTSE Closed at 5753 points. Change of -0.17%. Total value traded through LSE was: £ 5,706,354,809 a change of 60.68%
1/05/2020 FTSE Closed at 5763 points. Change of -100%. Total value traded through LSE was: £ 3,551,403,027 a change of 0%