UK AIM stock - FDEV - possible bullish countYou never know. For me, EW is not about certainties as there are no certainties in the markets (except perhaps the downward direction of the Pound!) but is this a possibility going forward? Might be.
FDEV trade ideas
1400-1500 target Bullish - above 50ma weekly & all MA'sVery bullish pattern here
re-tested trend line & RSI support level
30-40% profit here if we hold 50ma weekly.
Price above all MA's on daily chart
Inverse H&S Great setup.
Gap fill.
Classic hard selling & buying into the LHS declining ever since.
Directors been buying shares & record profits if you are into fundamentals.
Falling wedge, signs of exhausted selling. Price has held £7.30 area for around 6 weeks during the very intense selling from world equities. This area represented a gap to be filled dating back to 2017.
There is a further gap lower for those hoping for an even better entry. It's possible the price could hit this area but increasingly unlikely given duration of support at £7.30 (obviously further pressure on equities incl. BREXIT could change this).
During the fall the price has also formed a descending wedge which is the main bull case. The positive close into the year end at £8.00 put pressure on the top of the wedge. Most technical indicators are exhausted to the sell side.
Upside targets are attractive. A break above £10 would be a significant step representing a break of the downward trend and also a rejection of the H&S formation consistent with many stock prices at the moment.
Targets £10, £14.40, £18.70
Inverse H&S backtesting onto 200DMA - 30% rise possibleThis now looks great. Price is robustly backtesting the 200DMA which it's broken as part of an inverse H&S set-up. The measured move would take us to new highs around 2000. This would be your entry price - invalidated with daily close below 200DMA
FDEV Trend Lines Trend Lines indicate that Fdev has reached a turning point in it's share price today.
New upper resistance levels looking to form around £18.50.
This is assuming no price sensitive news is released in the meanwhile.
Old resistance levels in dark red at £10.50 and £14.00.
Dark Blue is long term average following trend lines, lighter blue short term from high to high and low to low, horizontal dark red the previous resistance levels, the thin red line is the long term trend.
Growth rate comparison FDEV, PDX, TTWOJust a basic comparison of growth rates between gaming developers Frontier Developments (green and red line), Paradox Interactive (light orange), and Take Two (darker orange). Frontier has by far out performed both other companies since 2013 in terms of growth. Interesting to notice the similarities between growth patterns of FDEV and PDX for the current year. Both had a rapid up turn after the quarterly reports, Paradox increased slightly more than FDEV during this period due to their profits growing by 120%. A good factor to bear in mind when speculating where the SP of FDEV might go after revenue from Jurassic World Evolution is announced.
Even considering FDEV's staggering growth to date, they are currently experiencing their most transformative year to date. Jurassic World Evolution is set to double units sales of previous games, Elite Dangerous has been released on PS4 growing sales to 2.5 million at the last update, with Planet Coaster cruising past the 1.5 million mark. Updates to all games are still incoming so expect future growth to continue.
With very few UK based tech companies on the market FDEV is increasingly looking like one of the best investment opportunities.
A possible new surport level at 1780!As always my opinions are my own and should not be considered as trading advice
What with all the positive news etc surrounding this gaming company it's not surprising to see that recent break out from that wedge formation. The latest short term pattern/trend suggests that the SP wants to (or being forced) return to 1780... now only time will tell if the 1780 is important or not
Personally I have held this stock over the past 2 years topping up every now and then, with my latest top up on the last dip, for myself, it's now more or less a case of just going long,with a little profit taking now and then over the next few years
Triangular Consolidation nearing completionThis triangle will break one way or another very soon. A break lower should provide a great opportunity to buy or add close to the 50DMA or lower green channel bottom. A break higher I think should be th next major impulse move higher and well worth riding up.
