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I have really enjoyed the teasers posted by Tom Winnifrith relating to the perils of not following One Free Share Tip A Day, as they are always worth a look. Now I am on the same trail in the wake of the March 21st technical recommendation on Premium Blog AIM Stocks Charting for May Gurney (LSE:MAYG) which was trading at 250p on the close yesterday after the merger with Costain (LSE: COST). In fact, I was only looking for 220p, but you can’t get it right every time.
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As far as AIM Stocks Charting is concerned, for those who do no know it is a premium blog, something which implies you get the best technical calls possible on what I regard as the most exciting part of the UK stock market. Apart from forensic charting of the type highlighted at May Gurney, all the big / popular names on AIM feature in what I regard as a relatively under charted area of the market. Last week’s May Gurney call is shown below:
May Gurney (LSE: MAYG): 50 Day Moving Average Breakthrough
The easiest thing to say about May Gurney is that the massive gap to the downside seen in September should have not only flushed out all by the most iron willed of longs, but also ensured that they would not return to this stock anytime soon. The technicals are of course interesting as well in the sense that ever since the recovery from the gap and sub 100p the target has been for the stock to fill the gap up to 220p. The view now is that given how close we are to the gap relatively speaking, it makes for a realistic target. It is also the case that now the 50 day moving average has been broken to the upside, while above it at 179p we have a decent risk / reward trade on our hands.
