It’s interesting to note that, looking at the moving averages on Stockopedia, the 50dma is crossing the 200dma in a downward direction – a “death cross” – and usually regarded as a bearish indicator.
At the end of March, I valued ASC at about £20 (http://is.gd/YUTGXw). The share price was 5528p at the time, but has since moved down to 4236p.
Although I think ASC is overvalued, it is interesting technically. It is currently oversold. I have noticed that quite often shares which are oversold and go through the death cross actually do have a rally. So it *might* be an interesting short-term long (a few days to maybe 2 weeks). The trick would be spot the end of the rally as a place to dump. I’d look for the momentum in the rally, assuming one occurs, to peter out.
The usual caveats apply: I am a complete numpty at technical analysis, and have no idea what I’m talking about. I have no position in ASC. I’m just making an observation “for fun”.
4236p
Mark Carter's blog 