UK Stock Concurrent Technologies PLC – CNC – is a share I purchased yesterday and when you look at the weekly chart I’ve posted above you can see how this share has grown by 8% this week. What you can’t see is how it moved 6% yesterday.
Now what this doesn’t show you is how big the spread is between the buy price and the sell price. I always like to keep the spread of a share to a minimum. However, the spread on this share is 3p and when you think how the share is only just over 80p each I have to wait for the share to move up by 3p before I break even.
Taking that into consideration the share had to be pretty special and I felt it was and here are the highlights for why:
- Long term MACD tested the 0 line and found support
- Good support by the 200 day average line
- RSI above historic strength line
Its always an encouraging sight when you can take a look at a share to see if it is historically showing a position it can come back to and then push back up. Look at the chart and see how the orange 200 day average has shown just that since July.
Also take a look at the long term MACD that started dropping in May yet it got back to the 0 line and then started to turn around. When you look at it now you can see its pushing up and the signal line has turned from red to green.
I’ve also drawn a historical line on the RSI that indicates a position of strength again this is created based on historic data but as you look back you can see how the share price moves based on the RSI being below or above this line.
Taking these things into consideration this feels to be a swimmer but please do your own research this is just my opinion.