Is Amur Minerals set to double?

The Amur Minerals share price recently gapped up above a trend we didn't believe existed.

As the chart below shows, the price is now reacting to movements against a downtrend from 45p and this, while vanishingly rare, is generally regarded as a good thing. It implies AMC can now be expected to outperform.

Of course, we've a "however".

The share was gapped up from 7.5p to start its new trend and, while recent movements suggest the market intends to cover the manipulation gap, the harsh reality is that weakness below 7.7p now signals a reversal to 7p, with a secondary of 5.9p.

We'd warn that the market is rarely kind-hearted, so anyone hoping for a bounce at 7.5p is liable to find themselves walking funny for a while.

Thankfully, such is the reality of this new trend that anything above 10p is very liable to reach an initial 14.75p with secondary, if bettered, at a longer-term 20p.

The funny thing is, our software is forced to suggest a long-term attraction exists at 42.75p, but we rather suspect positive news, positive market conditions, and a Santa rally will be required.

If the intention should prove to be a reversal to 6p before a real bounce, the market will hopefully take a couple of weeks to avoid the share being propelled once again below 'blue'.

Generally, a movement such as this would stink and effectively trap the share price. Unless, of course, "they" opt to do it with a spike downward at the open - which would be a good thing.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.