Traders Cafe with Zak Mir: Bulletin Board Heroes November 4

Asiamet (ARS): Resistance Through 3p

Just in case one wanted evidence that there is a seller or two on Asiamet at 3p plus, we were given proof by the hasty retreat for the stock from its 3.30p initial peak. The question now is whether this bull trap through 3p is going to mark a near term high and a subsequent extended bear phase, or whether it will be second or third time lucky for a 3p plus campaign between now and the end of the year. Key for the rest of the week for the longs is that there is no end of day close back below the 50 day moving average at 2.7p. Below this risks the 200 day line at 2.43p. But at least while the 200 day line is held there may be the prospect of further attempts higher.

 

Avacta (AVCT): Range Holding

Avacta seems to be torn on the fundamental side between being a diagnostics play – so 2020, and a therapeutics play, which could be transformational for the company as far as cancer immunotherapy. Indeed, a possible solution to the investor relations issue could be to split the company between the two aspects. In the meantime, there has been something of a pinball price action for the stock between 100p and 120p. So far it would appear that brief intraday support just below 100p will hold, but those looking for bullish comfort here may wish to wait on an end of day close back above the floor of this week’s gap to the downside at 113p, before assuming that the coast is clear and that there will not be an extended sub 100p

Blue Star Capital (BLU): Gathering Strength

One of the litmus tests as far as the strength of a stock’s recovery is whether the spike higher on news lasts more than a day. Usually, they do not. However, a second / third day does increase the chance of a lasting turnaround markedly, and with this in mind we have Blue Star Capital. The shares have already broken yesterday’s 0.195p peak, and an end of day close above this number should be enough to get the stock towards the top of the January broadening triangle at 0.28p by the end of November. We have already been treated to a 0.24p peak.

Cap-XX (CPX): 200 Day Line Target

Having peaked at the turn of the year through 14p, the subsequent decline to 5p this month has not been pleasant. However, with a recent April resistance line break at 5.25p, and a mini cup and handle formation over the past couple of weeks, it looks like the stock could be on the front foot after many months. The view at this stage is that while above 5.25p we could see Cap-XX hit at least the 200 day moving average now at 7.75p by the end of this month.

Dev Clever (DEV): June Resistance Line Break Awaited

While the market appeared to be initially rather nonchalant regarding the 120p plus valuation for the edtech group from ACF Equity Research, the shares did strength towards the end of the session, and so the notional 90p potential upside may be sinking in with some investors. Technically, we have seen Dev shares adopting a bouncing along the bottom style with reference to the floor of a rising trend channel from January. This bullishness is helped by the rising 200 day moving average at 32p. the longer the stock remains above the 200 day line, the greater the prospect of a June resistance line at 36p – to take Dev on a notional 1-2 months journey towards the top of the rising 2021 price channel at 55p.

Kodal Minerals (KOD): Fresh Momentum

Kodal continues to inspire a loyal following amongst retail investors, and this loyalty is perhaps set to reach new levels of further if the shares can finally rebound from their consolidation in the 0.30p’s, which seems to have gone on for months. The key here is that the shares continue to hold a 0.33p support line from May, and ideally this month go on to break a Jul resistance line at 0.38p. If this can be achieved one would be looking for the stock to achieve a 0.65p 2020 price channel target as soon as the next 2-3 months. While there is the risk of more 0.30p’s consolidation, Kodal is backed by a strongly rising 200 day moving average, which underlines the underlying bullish momentum.

Metals Exploration (MTL): Bear Trap Recovery

 

Narrow bear traps are always useful to spot in charting, and this has been the case with Metals Exploration from below former July support at 1.25p. Now well above this level, and with a rising 50 day moving average already, it could be the case that the shares are able to hit the area of July resistance at 2p, especially while they remain above the 50 day line currently near 1.35p. The timeframe on such a move is as soon as the end of next month.

Nightcap (NGHT): Gaps Higher

Shares of Nightcap stand out currently off the back of two recent unfilled gaps to the upside, the first being a bear trap gap reversal. The latest gap higher has come in the wake of the company’s positive trading update, and the revelation that the opening schedule is well ahead of expectations. The gaps higher suggest that the bears may have been wrong footed by the company’s improving fundamentals, and that a break of the rising 200 day moving average at 24p could lead the stock back to its best 2021 levels in the low to mid 30p’s as soon as the end of this year. At this stage only well below the 50 day moving average at 18p on a sustained basis really delays the recovery scenario.

Nuformix (NFX): Key 1.6p Zone

Although shares of Nuformix could have been said to have turned the corner last month with the break of a March resistance line at 1.2p, the initial rebound to 1.6p was met with resistance. Nevertheless, having tested the 1.2p area once again and now approaching 1.6p, it could very well be that it is second time lucky for a decent rally here. As little as a weekly close above this level could leave the stock’s loyalists looking for rebound towards post April resistance at 2.5p by the end of this month. The 3.4p zone at the top of a broadening triangle and 2021 could be on tap on a 2-3 months timeframe if we clear the 2.5p zone by the end of this month.