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The AMGO share price has been volatile recently, even after the company made some progress in its business. The stock is trading at 6.48p, which is lower than this week’s high of 10.04p. However, the stock remains comfortably 300% above the lowest level this year. This performance brings its total market cap to about 30 million pounds.
The main reason the Amigo Holdings share price has been volatile this week is that a high court in London accepted the company’s new business scheme as the lender seeks to implement a turnaround strategy. This is a major step considering that the company was forced to halt its business during the pandemic. A dispute over mis-selling prevented the company from going back to business.
After receiving a go-ahead from the Financial Conduct Authority, the firm has been trying to rebuild its business. But it needed a UK high court to give it the go-ahead in its revival. Now, with the court’s blessing, the company needs to raise cash, which could lead to more dilution. In a statement, the company’s CEO said:
A successful New Business Scheme will open the door to a fresh source of responsible, regulated finance for millions of people in this country who don’t have access to mainstream banking.”
The daily chart shows that the Amigo share price has been in a tight range in the past few weeks. The stock has formed a symmetrical triangle pattern that is shown in red. At the same time, the stock remains slightly above the 25-day and 50-day moving averages. In addition, the MACD has moved slightly above the neutral point.
Therefore, with the triangle pattern nearing its confluence level, there is a likelihood that the AMGO share price will have a breakout soon. A move above the resistance at 9p will signal a bullish breakout. A bearish breakout pattern will be confirmed if the price moves below the support at 5.43p.
This post was last modified on May 26, 2022, 09:27 BST 09:27