By Zak Mir | Wednesday 2 September 2015
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
If you want me to analyse a stock for you just drop me a line at [email protected] - Today I look at shares of Argos Resources (ARG), Optibiotix (OPTI), Zoo Digital (ZOO) and offer some share price targets.
Argos Resources (ARG): Range Highs Due At 12p
There were a couple of technical triggers on the daily chart of Argos Resources which pointed us to the prospect of a possible turnaround after the recent bear run. The main one is the way that for August the shares put in a narrow bear trap rebound down to 5.5p from below the July 6p floor. This is very often the kind of setup from which lasting / significant recoveries can stem from, and so far it looks as though it has come up trumps for bulls of Argos Resources, especially when combined with the bounce off the floor of a rising trend channel which can be drawn from as long ago as December. The floor of the channel currently runs at 6p – just below the present level of the 10 day moving average at 6.24p. The view now is therefore that we expect Argos Resources to make further progress after the extended base between 5p and 6p. The favoured scenario is that having broken back above the 50 day and 200 day moving averages when they had just delivered a dead cross sell signal, one would expect the fightback from this stock to be all the more aggressive. Indeed, at least while there is no end of day close back below the 50 day line at 7.04p an acceleration towards the top of last year’s channel as high as 12p / May resistance is expected over the next 1-2 months.
Optibiotix (OPTI): Above 50 Day Line Targets As High As 60p
One of the better technical events is when a stock or market recovers the 200 day moving average, without any subsequent need to test it as new support afterwards. This is what we have been treated to at Optibotix, as long ago as November, and as can be seen from the share price progression since, the event has paid off very well for the bulls. The overall position here for the shares on a technical basis is that the chart pattern of a broadening triangle has been able to drag the price action higher. The best way forward at this stage may be to rely upon the floor of the triangle / 50 day moving average at 37p as near term support, with only a weekly close below this even beginning to delay what could be a significant ongoing rally. The ideal scenario is that following the latest break of the former 2015 intraday high of 42.99p we would be looking to a decent weekly close above this level for Friday. If this can be delivered one would expect to see a push to the top of the 2014 triangle at 60p – a 1-2 months timeframe destination. Cautious traders would wait for a penny or two of profit taking here before going for this momentum setup.
Zoo Digital (ZOO): Return To 2015 Resistance
Sometimes all that is missing in terms of a stock or market getting off the ground in terms of a new rally is a quick bear trap. Very often this can be a blink and you missed it affair, but once it is in then the recovery can prove to be surprisingly robust. This is playing out well as far as the latest technical developments at Zoo Digital, with progress within a rising trend channel which can be drawn on the daily chart from as long ago as October. The floor of the channel currently runs just below the 50 day moving average at 7.14p, with the message at the moment being that we would be looking to this zone as providing notional double support. On this basis one can now call the stock as high as the 2014 resistance line projection at 13.75p. This is the 1-2 months price target, especially on any swift clearance of the 200 day moving average at 8.39p. Any weakness towards the 50 day line in the interim to cool off the very overbought RSI at 80 is currently regarded as a buying opportunity at Zoo Digital.
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