Author: T&T Staff

#FTSE #GOLD At Trends and Targets, we’re often asked how we produce our target levels, hopefully due to our often devastating accuracy. For commercial reasons, we’re forced to be vague but there’s another reality in play. Very rarely do we apply just one set of formula to a potential movement. Instead, we’ll look at near term potentials based on market movements during the most recent month. Then we’ll zoom out and look at what’s been happening during the period since the last cataclysm (think Covid-19 hitting), and finally take a glance at really big picture potentials, sometimes since the beginning of time. As part of this exercise, we question if a price is trading higher (or lower) than any previous highs, along with looking for visual cues on a chart.

At this point, beside boring the reader, there’s another factor which requires satisfied. We’ve got to question whether recent minute by minute movements are tending to reach targets or fizzle out, before target levels are achieved. This is an attempt to ascertain whether a market is showing any particular strength, in any particular direction.

Sometimes, the result of all this focus on numbers is a need to just walk away and admit we don’t have a blooming clue! Other times, such as with the FTSE at present, we start to find hints of direction and will bias our thinking accordingly.

 

In this report, the bias is toward potential gains on the UK market, at least until 6730 makes a guest appearance. At such a level, we believe the FTSE may pause for breath, especially as our next major point of interest is around 600 points higher.

 

For the immediate future, our inclination is to “play it safe” with the FTSE, demanding the index next trade above 6505 points to enter a cycle toward an initial 6543 points. If exceeded, our secondary calculates at 6560 points. In fact, the index could easily find itself accelerating toward 6611 points.

If triggered, the tightest stop loss level looks like a reasonable 6450 points. It’s fingers crossed time, especially as the market now needs below 6383 to suggest our optimism is misplaced.

 

FUTURES

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
10:27:20PM	BRENT	48.79	47.64	47.265		48.45	48.84	48.96		48.14	Sorry
10:28:46PM	GOLD	1841.32	1823	1815.5		1838	1844	1847		1834	‘cess
10:31:25PM	FTSE	6489.77	6421	6394		6479	6512	6546		6450	‘cess
10:32:57PM	FRANCE	5549.9	5542	5529.5		5577	5586	5601.5		5553
10:36:19PM	GERMANY	13213.87	13198	13171		13232	13276	13318		13230	Success
10:37:51PM	US500	3668	3655	3644.5		3675	3682	3691.5		3664	‘cess
10:40:35PM	DOW	29958	29769	29700.5		29915	30073	30129.5		29951	Success
10:42:03PM	NASDAQ	12484	12440	12411		12492	12540	12563		12464
10:43:53PM	JAPAN	26733	26672	26620.5		26767	26840	26894		26759

 

3/12/2020 FTSE Closed at 6490 points. Change of 0.42%. Total value traded through LSE was: £ 7,033,541,138 a change of 11.37%

2/12/2020 FTSE Closed at 6463 points. Change of 1.24%. Total value traded through LSE was: £ 6,315,459,569 a change of 10.4%

1/12/2020 FTSE Closed at 6384 points. Change of 1.88%. Total value traded through LSE was: £ 5,720,343,712 a change of -42.77%

30/11/2020 FTSE Closed at 6266 points. Change of -1.59%. Total value traded through LSE was: £ 9,995,620,767 a change of -0.31%

27/11/2020 FTSE Closed at 6367 points. Change of 0.08%. Total value traded through LSE was: £ 10,026,664,770 a change of 117.2%

26/11/2020 FTSE Closed at 6362 points. Change of -0.45%. Total value traded through LSE was: £ 4,616,288,955 a change of -37.01%

25/11/2020 FTSE Closed at 6391 points. Change of -0.64%. Total value traded through LSE was: £ 7,328,126,643 a change of -3.31%

#DAX #DOW  A glance at Hochschild area of operations was surprising, the map looking identical to the route taken by Euan McGregor in the recent TV show, The Long Way Up. Essentially, film actor McGregor rode an electric bike up the left hand side of South America, the trip punctuated by constant searches for a travel plug and cable extensions.

Hochschild (LSE:HOC) , describing themselves as the leading underground precious metals producer, search for gold and silver with some really big recovery numbers quoted on their website. With gold prices messing around between the 1800 and 2000 dollar level presently, the company is doubtless enjoying levels of income not seen for 9 years. This detail shall perhaps prove important when we take a look at the immediate share price potentials.

Currently trading around 237p, we regard 247p with the potential of triggering some further recovery. Above this level, we can calculate an initial ambition of 271p with secondary, if bettered, at 298p. Visually, neither aspiration is particularly interesting, especially as the Big Picture demands the share price CLOSE a session above 298p to provoke a return to some historical share price levels.

Closure above 298p should present 349p as a reasonable hope with secondary, if exceeded, calculating at a more useful 540p and a return to levels the share price has not witnessed for 9 years. If it all intends go wrong, the price needs reverse below 200p as this makes swift reversal to 91p an arithmetic possibility.

Rainbow Rare Earths (LSE:RBW) The rainbow symbol appears to be hijacked by any organisation wishing to present themselves as “a right-on, politically correct bunch”. It was refreshing to visit Rainbow Rare Earths website and discover they’ve carefully avoiding using the cliché anywhere in their presentations, instead opting for a corporate logo of 4 different coloured pointed hats. Perhaps the little hats are supposed to denote a mountain range?

From the corporate website, their business strategy reads as; “… to become a globally significant producer of rare earth metals, with a particular focus on NdPr, a fundamental building block in the global green technology revolution. As a key component of permanent magnets, required in the construction of motors and turbines, analysts are predicting demand for these rare earth oxides to grow substantially over the coming years, tipping into a supply deficit.”

At time of writing, Rainbow are trading around the 11p mark, needing only trades above 11.2p to suggest coming price recovery to an initial 14p with secondary, if bettered, calculating at 18p. If we chose to accept the closing price as a sensible signal, the share already allows considerable optimism for the future.

Presently, the share price needs sink below 6p to provoke panic for the future but we’re fairly impressed at the strength of movement since the start of November and the forced “gap” up in price. The market clearly has an idea of what it wants.

 

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
10:11:59PM	BRENT	47.96									‘cess
10:13:47PM	GOLD	1830.95									‘cess
10:15:50PM	FTSE	6452									‘cess
10:23:01PM	FRANCE	5577									‘cess
10:25:36PM	GERMANY	13308	13280	13255	13195	13328	13371	13406	13452	13303	‘cess
10:27:20PM	US500	3670									Shambles
10:30:08PM	DOW	29910	26600	29492	29386	29750	29922	29966.5	30089	29755	‘cess
10:33:27PM	NASDAQ	12466
10:48:30PM	JAPAN	26851									‘cess

 

2/12/2020 FTSE Closed at 6463 points. Change of 1.24%. Total value traded through LSE was: £ 6,315,459,569 a change of 10.4%

1/12/2020 FTSE Closed at 6384 points. Change of 1.88%. Total value traded through LSE was: £ 5,720,343,712 a change of -42.77%

30/11/2020 FTSE Closed at 6266 points. Change of -1.59%. Total value traded through LSE was: £ 9,995,620,767 a change of -0.31%

27/11/2020 FTSE Closed at 6367 points. Change of 0.08%. Total value traded through LSE was: £ 10,026,664,770 a change of 117.2%

26/11/2020 FTSE Closed at 6362 points. Change of -0.45%. Total value traded through LSE was: £ 4,616,288,955 a change of -37.01%

25/11/2020 FTSE Closed at 6391 points. Change of -0.64%. Total value traded through LSE was: £ 7,328,126,643 a change of -3.31%

24/11/2020 FTSE Closed at 6432 points. Change of 1.56%. Total value traded through LSE was: £ 7,578,918,377 a change of 19.1%

#France #Nasdaq Those who watch ‘Gold Rush’ on TV will doubtless remember last year, when one of those featured (‘Parker Schnabel’) visited Australia to search for Gold during the frozen season in North America. The fascinating series which ensued obviously discovered Gold, along with the important detail the product was not discovered in powdered, ground down, form, but instead as nuggets of a size generally unavailable in the Canadian wilderness.

The documentary series completed with an admission by Parker he intends revisit Australia, next time geared up for proper mining.

Importantly, the bloke ‘Parker’ is in his early 20’s, armed with a work ethic which ensures his team of miners exceed the results of other mining companies featured. It will be interesting to see if he continues to outperform in Australia. This, neatly, brings us to Greatland Gold, a company already operating in several areas on the continent visited by Parker during 2019. Their share price has performed quite strongly during 2020 and now decorates the sky at its highest level ever.

We’ve no reason, visually, to expect the gains to cease. The current picture is pretty amazing, suggesting price movement above 29.7p should continue a march toward an initial 31.2p with secondary, if exceeded, an impressive 35p.

Arithmetically, we start to experience problems at the 35p level unless the market discovers an excuse to start “gapping” the share price up at the open. Should such occur, it becomes very likely the prospect of a ceiling at 35p shall be exceeded.

 

If everything intends go wrong for Greatland, the share needs melt below Red on the chart, currently around 19.5p. This will risk triggering a reversal cycle toward 12.4p.

 

For now, we’re inclined toward enthusiasm with this share price and suspect gains shall continue.

 

 

FUTURES

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
10:05:51PM	BRENT	47.29									Shambles
10:10:52PM	GOLD	1815.46									Success
10:14:22PM	FTSE	6389									Success
10:16:47PM	FRANCE	5582.9	5563	5555	5543	5580	5591	5606	5643	5569	Success
10:18:43PM	GERMANY	13384
10:25:01PM	US500	3659									Success
10:37:56PM	DOW	29774									‘cess
10:40:16PM	NASDAQ	12461	12330	12262.5	12178	12472	12516	12573.5	12929	12309	Success
10:51:29PM	JAPAN	26876									Success

 

1/12/2020 FTSE Closed at 6384 points. Change of 1.88%. Total value traded through LSE was: £ 5,720,343,712 a change of -42.77%

30/11/2020 FTSE Closed at 6266 points. Change of -1.59%. Total value traded through LSE was: £ 9,995,620,767 a change of -0.31%

27/11/2020 FTSE Closed at 6367 points. Change of 0.08%. Total value traded through LSE was: £ 10,026,664,770 a change of 117.2%

26/11/2020 FTSE Closed at 6362 points. Change of -0.45%. Total value traded through LSE was: £ 4,616,288,955 a change of -37.01%

25/11/2020 FTSE Closed at 6391 points. Change of -0.64%. Total value traded through LSE was: £ 7,328,126,643 a change of -3.31%

24/11/2020 FTSE Closed at 6432 points. Change of 1.56%. Total value traded through LSE was: £ 7,578,918,377 a change of 19.1%

23/11/2020 FTSE Closed at 6333 points. Change of -0.28%. Total value traded through LSE was: £ 6,363,234,404 a change of 15.64%

#Gold #SP500 We’re intending to spend the run up to Xmas, digging out some oddball shares which appear to be showing potential. At present, the market is pretty firmly split between two classes of share. Those who’ve recovered from the March Covid-19 inspired drop and those still not recovered. Unsurprisingly, Tritax fall into the former category, the FTSE 250 member specialising in supply of unimaginative Big Box buildings for the distribution market.

Now we think about, it was inevitable these massive logistics centres, which seem to grow alongside motorway junctions, could probably be bought from a catalogue! Tritax call themselves the UK’s leading investment company focussed on larger scale logistics real estate. With the switch to online shopping, there’s a pretty certain increase in demand for this sort of unit while conventional retail establishments shut down across the UK.

 

As mentioned, Tritax share price already exceeds the level attained prior to the Coronovirus drop and currently displays the potential of some useful price movements in the future. Presently trading around the 165p mark, the share need only exceed 172p to hopefully confirm an ambition of growth to an initial 195p. If bettered, it shall be hard to discount the chances of a future 217p making itself known at some point.

Overall, the highest we can calculate works out at 239p and obviously, this does not mean the price cannot go higher. Instead, we shall need revisit the tea leaves to see beyond such a level.

 

If it all intends go wrong, Tritax share price needs slip below 239p to suggest panic, along with the risk of reversal toward 113p and hopefully a bounce.

 

FUTURES

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
9:59:37PM	BRENT	47.69									‘cess
10:02:33PM	GOLD	1777	1763	1756	1729	1789	1789	1796	1807	1774
10:04:41PM	FTSE	6267									Success
10:07:18PM	FRANCE	5498
10:11:34PM	GERMANY	13319									Success
10:16:18PM	US500	3633	3607	3591	3569	3627	3637	3654	3674	3608	Success
10:21:00PM	DOW	29680									‘cess
10:24:50PM	NASDAQ	12312									Success
10:27:02PM	JAPAN	26484									‘cess

30/11/2020 FTSE Closed at 6266 points. Change of -1.59%. Total value traded through LSE was: £ 9,995,620,767 a change of -0.31%

27/11/2020 FTSE Closed at 6367 points. Change of 0.08%. Total value traded through LSE was: £ 10,026,664,770 a change of 117.2%

26/11/2020 FTSE Closed at 6362 points. Change of -0.45%. Total value traded through LSE was: £ 4,616,288,955 a change of -37.01%

25/11/2020 FTSE Closed at 6391 points. Change of -0.64%. Total value traded through LSE was: £ 7,328,126,643 a change of -3.31%

24/11/2020 FTSE Closed at 6432 points. Change of 1.56%. Total value traded through LSE was: £ 7,578,918,377 a change of 19.1%

23/11/2020 FTSE Closed at 6333 points. Change of -0.28%. Total value traded through LSE was: £ 6,363,234,404 a change of 15.64%

20/11/2020 FTSE Closed at 6351 points. Change of 0.27%. Total value traded through LSE was: £ 5,502,683,054 a change of -22.04%

#Brent #Germany “Defending a Position” was aptly demonstrated this weekend by one of our unwanted cats. Often, folk will find themselves in a trading situation where all sorts of tactics are employed to justify making a horrible mistake in the first place. In the case of the stupid cat (is there any other type?), we witnessed truly spectacular behaviour by a cat intent tearing up its nine lives.

 

It was a typical winter weekend here in Argyll. Cold outside, wood burning stove lit, two dogs basking in the heat from the fire, dozing quite happily following an afternoon at the beach. To get into trouble, the cat needed slink past one of the Golden Retrievers, the one which utterly detests the moron. Her next obstacle, the younger dog, was sprawled in front of the fire and hogging the best heat. But the idiot cat had a plan. All it needed do was jump over the dog and land on top of the stove.

Luckily for the stupid cat, our stove doesn’t have a searingly hot cast iron plate exposed at the top. Instead, over the years, grand-children have brought unusual stones from the beach, painting some of them, creating a display on top of the fire. We’ve been quite happy with this idea as, even once the fire goes out, the stones retain residual heat for a few hours. And (aside from some stones painted with glitter) the arrangement is visually pleasing.

You would not want to pick up one of these stones while the fire is lit. But the cat decided it was as fireproof as a Formula1 driver, positioned itself on a small, very hot, sandstone block. Then it tried out a marginally less scalding pumice stone and finally opted to lie on its side on a bunch of small stones. To be honest, the entire process took a few seconds as we expected it to jump down immediately. Things started go wrong, attempting to remove the ungrateful monster from the hot rocks. A ‘hissy fit’ ensued, along with attempts to claw fingers as the animal decided it preferred being cooked rather than do anything logical. To avoid being rescued, it opted to jump down and land on the dog which hates her, causing the outbreak of World War 3.

 

The shambles was faintly reminiscent of a mistake made about 15 years ago, when convinced “Defending a Position” was something all wise traders do… Buying a share, one enthusiastically followed by many on the internet, the price sharply dropped when the company issued what was perceived as good news. Internet chatroom methodology suggested “averaging down” wouldn’t be the worst decision, resulting in the situation where the initial holding of 10,000 shares at 9p each became a holding of 50,000 shares costing an average of 3p each. Meanwhile, the share price was messing around at the 2p level but good news wasn’t far away. The company was going to offer ‘investors’ the opportunity to buy more shares at a ‘Black Friday’ price offer of 1.8p.  This was clearly a good idea, allowing further averaging down but utterly ignoring the reality of more shares diluting the overall value. Once the issue completed, the share price became quite active with the value heading toward the 1p level. The share was eventually delisted once trading was suspended.

Doubtless a few folk are reading this, remembering similar experiences over the years. We tend take an extremely suspicious stance, when companies start playing with their issued share numbers as dilution rarely has a happy ending and neither does price consolidation.

 

Of the big three retail banks, Barclays has avoided (so far) any games with its share price or issued share number since the good old days of the financial collapse in 2009, a period when life was simpler. Thankfully, it looks like December should witness some further price growth with Barclays as price movement next above just 145p calculates as capable of a visit to 154p next. If exceeded, it feels like some hesitation can be anticipated at 175p longer term, despite the Big Picture already insisting the share price is next heading to 190p as a major point of interest.

For it all to go wrong, the share needs decline below 132p as this risks a visit to 123 with secondary, if broken, at a bottom hopefully of 113p.

 

Visually this feels pretty optimistic at present. But we’re pretty sure the idiot cat was optimistic when it jumped onto a burning stove.

 

FUTURES

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
9:13:54PM	BRENT	48.33	47.87	47.425	46.9	48.44	48.46	48.675	49.13	47.84	Shambles
1:59:02PM	GOLD	1788.32				1811				1783	Success
2:01:31PM	FTSE	6341.67				6377				6383	‘cess
2:21:00PM	FRANCE	5612				5578				5590	Success
2:31:26PM	GERMANY	13334	13239	13214	13163	13286	13367	13381.5	13429	13296	Shambles
2:34:36PM	US500	3638									‘cess
2:44:15PM	DOW	29928									‘cess
2:46:34PM	NASDAQ	12272									‘cess
3:27:09PM	JAPAN	26757									Success

 

27/11/2020 FTSE Closed at 6367 points. Change of 0.08%. Total value traded through LSE was: £ 10,026,664,770 a change of 117.2%

26/11/2020 FTSE Closed at 6362 points. Change of -0.45%. Total value traded through LSE was: £ 4,616,288,955 a change of -37.01%

25/11/2020 FTSE Closed at 6391 points. Change of -0.64%. Total value traded through LSE was: £ 7,328,126,643 a change of -3.31%

24/11/2020 FTSE Closed at 6432 points. Change of 1.56%. Total value traded through LSE was: £ 7,578,918,377 a change of 19.1%

23/11/2020 FTSE Closed at 6333 points. Change of -0.28%. Total value traded through LSE was: £ 6,363,234,404 a change of 15.64%

20/11/2020 FTSE Closed at 6351 points. Change of 0.27%. Total value traded through LSE was: £ 5,502,683,054 a change of -22.04%

19/11/2020 FTSE Closed at 6334 points. Change of -0.8%. Total value traded through LSE was: £ 7,058,313,031 a change of 4.8%

#FTSE #WallSt This is being written under duress, the writer rapidly developing an extreme dislike for vaccines. Earlier today, the annual flu jab was administered, virtually in the GP’s car park. The practice decided their “Flu Clinic” risked being a dangerous nuisance with each treatment room needing cleaning down, after the patient was seen. Instead, patients were seen behind dividers, not allowed to sit down, and the customary cuppa while awaiting any side effects making themselves known was a distant memory.

To be fair, the process was streamlined and sitting around with a coffee whilst feeling a fraud wasn’t missed.

The dislike process comes from a stinking headache making itself known, along with a strong probability of being unable to sleep as the night progresses. Unfortunately, these symptoms occurred last year and there’s no reason to suspect this year shall be any different. Difficulty with vaccines obviously reminded that a hard look at Astrazeneca was merited, especially given the conflicting and confusing reports relating to their Covid-19 treatment, developed with Oxford Uni. News of their jag tended follow the messily beaten path trodden daily by UK politicians and a UK media always keen to find the worst aspect of events.

Day one, the Oxford/AZN vaccine was groundbreaking, cheaper, easier to distribute. By day three, the trial results were noticeably less efficient than those mentions for Pfizer and Moderna but we could be reassured this was due to a cock up in giving different doze strengths during the trial. All things considered, this version of reality appeared to follow the UK playbook, promise the world on Day One, then grudgingly give excuses thereafter. Perhaps, as all the results are preliminary, the company is in the same position as Pfizer and Moderna, all awaiting the time they can publish full results for proper scrutiny by bodies with greater skill than journalists looking for a clickbait headline.

 

Unfortunately for Astrazeneca’s share price, there are implications from the current pause in proceedings.

It closed Thursday at 7748p and now, the threat exists of weakness below 7710p triggering reversal to an initial 7232p with secondary, if broken, calculating at a bottom hopefully of 6269p hopefully. Some slight hope is generated due to movements during November as “perhaps” it shall bounce at 6735. Our normal logic suggests AZN shall deserve a Long position, should 6269 ever make an appearance. Alternately, should any miracle news drive it above 8900p, go Long and wait!

FTSE for FRIDAY The US Thanksgiving thing sneaks up on us every year, a sensible market holiday which is easily overlooked. There’s something almost essential about a break in proceedings between August and Xmas but the FTSE eschews the opportunity. On Wall St, the market was closed for “Thanksgiving” and for Friday, it closes early at 1pm Eastern Time.

This US holiday generally spells a period of boredom for the FTSE, a session where despite any excitement, the market will doubtless close the day at the same level it opened. It can be assumed we’re not bursting with optimism for Friday. Perhaps this year shall be different, thanks to Brexit, Trump/Biden & Covid-19.

Allegedly, market strength next exceeding 6401 points should bring FTSE growth toward 6500 next with secondary, if exceeded, up at 6563 points. While there is certainly some inherent strength in the FTSE, we’re not inclined to hold our breathe for this scenario.

Instead, it appears more likely weekness below 6350 shall prove capable of a visit to 6304 points. Should such a level break, we can work out a secondary at 6267 points.

Thanks to the US holiday and experience in prior years, our thoughts lean toward only initial targets being at risk for Friday, regardless of whether it’s an UP or DOWN trigger.

Have a good weekend.

 

Free First Movement for FUTURES

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
10:50:48PM	BRENT	47.8	47.46	47.02		48.21	48.22	48.65		47.65	‘cess
10:55:52PM	GOLD	1810.73	1803	1800		1815	1818	1823		1809
10:58:07PM	FTSE	6343.62	6338	6306		6377	6384	6394		6346	‘cess
10:59:55PM	FRANCE	5562.8	5553	5541.5		5577	5579	5591		5557
11:01:51PM	GERMANY	13284	13247	13220		13317	13347	13382.5		13273
11:03:32PM	US500	3624.47	3615	3606.5		3630	3641	3645		3627
11:07:14PM	DOW	29835	29775	29700		29880	29955	29970		29852
11:09:27PM	NASDAQ	12171	12114	12072		12214	12220	12253		12170	‘cess
11:11:12PM	JAPAN	26450	26338	26270.5		26461	26527	26590		26448

26/11/2020 FTSE Closed at 6362 points. Change of -0.45%. Total value traded through LSE was: £ 4,616,288,955 a change of -37.01%

25/11/2020 FTSE Closed at 6391 points. Change of -0.64%. Total value traded through LSE was: £ 7,328,126,643 a change of -3.31%

24/11/2020 FTSE Closed at 6432 points. Change of 1.56%. Total value traded through LSE was: £ 7,578,918,377 a change of 19.1%

23/11/2020 FTSE Closed at 6333 points. Change of -0.28%. Total value traded through LSE was: £ 6,363,234,404 a change of 15.64%

20/11/2020 FTSE Closed at 6351 points. Change of 0.27%. Total value traded through LSE was: £ 5,502,683,054 a change of -22.04%

19/11/2020 FTSE Closed at 6334 points. Change of -0.8%. Total value traded through LSE was: £ 7,058,313,031 a change of 4.8%

18/11/2020 FTSE Closed at 6385 points. Change of 0.31%. Total value traded through LSE was: £ 6,735,334,001 a change of -10.55%

#France #Germany There’s a saying, “The Market Always Knows” and visually there can be few shares where this isn’t more evident than Lookers. Considering since 2009, the company has never declared less than £30m profit before taxes, at the end of 2015 something started to go very wrong with their share price. And when it slipped below 106p back in 2017 , the writing was pretty much on the wall for what was to come.

At the start of July this year, the company took the unusual step of suspending trading in their shares, due to an audit discovering a £300,000+ fraud which was appears to be the tip of a very expensive iceberg. Their results, finally revealed, show a loss of £46m in 2019 and of course, this was last year. Given the damage to the motor trade during Covid-19, we’re not inclined to expect anything exciting for 2020 either.

 

So, the big question must relate to the share price? Generally we avoid discussing “suspended” shares like the plague but in this instance we’re a little curious as to the future when the shares are admitted to trading again. Should the price manoeuvre below 18p, reversal to an initial 10p is anticipated. If such a level breaks, we’d hope 4.35p shall provide an ultimate bottom, along with a suitable excuse for a proper bounce. Visually, there’s even ample argument to hope for a bounce at 10p given this matches the all time low in March of this year.

Closure below 4.35p would be a really bad thing. We’re unable to calculate below this point.

 

Of course, we can easily return to our opening truism; “The Market Always Knows” as there’s a (very slight) chance all this utterly dreadful news is “priced in” with a result, when the share is relisted, some surprise recovery becomes possible. We certainly shall not be impressed unless the price exceeds 35p and rejoins the historical uptrend. Such movement is liable to prove worthwhile, capable of triggering further recovery to 40p initially with secondary, if exceeded, at 52p. Beyond such a level, we’d need to stir the tea leaves again as the potentials currently look too good to be true.

FUTURES

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
10:30:41PM	BRENT	48.83									‘cess
10:37:14PM	GOLD	1808.4
10:41:45PM	FTSE	6393
10:43:53PM	FRANCE	5574.3	5542	5528	5507	5573	5591	5605	5626	5559	Shambles
10:45:50PM	GERMANY	13303	13233	13187.5	13124	13316	13373	13402.5	13459	13272
10:56:48PM	US500	3631.87
10:58:45PM	DOW	29909									‘cess
11:01:32PM	NASDAQ	12171									‘cess

25/11/2020 FTSE Closed at 6391 points. Change of -0.64%. Total value traded through LSE was: £ 7,328,126,643 a change of -3.31%

24/11/2020 FTSE Closed at 6432 points. Change of 1.56%. Total value traded through LSE was: £ 7,578,918,377 a change of 19.1%

23/11/2020 FTSE Closed at 6333 points. Change of -0.28%. Total value traded through LSE was: £ 6,363,234,404 a change of 15.64%

20/11/2020 FTSE Closed at 6351 points. Change of 0.27%. Total value traded through LSE was: £ 5,502,683,054 a change of -22.04%

19/11/2020 FTSE Closed at 6334 points. Change of -0.8%. Total value traded through LSE was: £ 7,058,313,031 a change of 4.8%

18/11/2020 FTSE Closed at 6385 points. Change of 0.31%. Total value traded through LSE was: £ 6,735,334,001 a change of -10.55%

17/11/2020 FTSE Closed at 6365 points. Change of -0.87%. Total value traded through LSE was: £ 7,529,482,132 a change of -4.74%