Supply@me share prices have traded erratically since the year began. This has caused uncertainty in the markets, which has seen the shares plunge by 54 percent in 2022 alone.
The 2022 performance of Supply@me has been underwhelming, with investors seeing more than half of their share worth evaporate in thin air. The share fundamental response over the year has also not been great for these investors. This has included the announcement made this month by the company that its Nonexecutive Chairman was resigning. The announcement was followed by a drop in the market, which, since then, prices have tried correcting to the upside on numerous occasions.
The drop in price has also been due to the company’s poor performance in the market. Based on the most publicly available financial data, the company has not made a profit in over 12 months. This can cause many investors to avoid investing in the company. In addition, the markets may also be responding to the low performance of the Supply@me share price by dropping.
The daily chart below shows Supply@me share price has been trading within a descending channel since early October 2021. Today, however, the prices have hit a support level of GBp 0.0606. The prices have also attempted to break out of the support level and failed numerous times.
The chart also shows that the current price of GBp 0.0793 is a bounce from the support level. This is after the prices failed to break to the downside of the support level. The prices are also approaching the upper trend line of the descending channel. This presents us with two scenarios that are likely to occur. The first is that the prices are likely to continue trading upward and hit the upper trendline. However, the prices will failed to break the upper trendline and trigger another bearish move.
The second scenario that is more likely to playout is that the prices will hit the upper trendline of the descending channel. However, the prices will break out of the structure to the upside rather than retracing back and resuming the downward move. If this happens, there is a real chance that the prices may trade above GBp 1.00 psychological level in the coming days.
This post was last modified on Apr 01, 2022, 17:44 BST 17:44