michaeldobfx

Begbies Traynor LSE - Classic Cup and Handle on daily chart

Long
LSE:BEG   BEGBIES TRAYNOR GROUP PLC ORD 5P
Hi everyone,

Just giving a quick analysis on one of the AIM-listed stocks on the LSE (London/UK). As you can see, there is a clear cup and handle forming on the daily chart , and it is an incredibly clean example in reference to what you would technically find in a text book. The resistance is at 115p, and this week it has seen a breach above next to the 120p level.

The company itself is also fairly good on the fundamental side - its latest fundraising (secondary offering to help finance another acquisition) was recently oversubscribed and the placing price was above market price, which the share price higher from 105p to 115p. As it is seemingly breaking resistance now, the question is about whether there will be a retest of the 115p level, or whether it will continue above 120p and onwards. Canaccord currently has a 170p price target on the stock, as issued earlier in March. The cup and handle may signify a strong climb as the UK eases lockdown. Another buying opportunity would be in the case where the price will fall to the lower red upwards trendline, which seems to be a good support for the price.

Disclaimer: I hold BEG at 105p average. Please do not take as professional financial advice. Always do your DD. Thanks!

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