Argo Blockchain (ARB): Cryptocurrency Proxy Momentum Play

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It is perhaps a measure of the unpopularity of the stock since it came to market last summer that even with the recent near vertical rise of the cryptocurrencies over the past three months, we have not seen a real jump in the stock. It remains stubbornly below the 16p zone of the IPO day.  Even the Cadbury’s Smash robot lookalike has not helped so far.

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However, such mismatches in price and sentiment offer opportunity, with the daily chart underlying what this is. For instance, we have been looking at a classic saucer bottom, with the recent consolidation for the stock taking the form of the handle on a Cup & Handle formation . All of this means that with the momentum of two gaps to the upside in as many months, a break of recent 8p resistance – possibly via another gap, could lead the stock much higher. The favoured destination at this stage is the top of a rising trend channel drawn from last August heading for 15p, a 1-2 months target. At this stage only back below this month’s 5.7p floor would really upside the upside argument.

 

 

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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