By Elric Langton | 9 January 2024
This little gem is another Manchester-based trailblazer that seems set to puff its chest out with renewed confidence, not least due to the smart acquisition almost a year ago, which saw Brave Bison gobble up Social Chain. This isn’t just any purchase; it’s a £7.7 million investment in the future, partly funded by an oversubscribed placing of £4.75 million of stock. This move isn’t just about growing bigger; it’s about growing smarter.
Before we get into the nitty-gritty of the Company structure, strategy and performance, it is perhaps worth mulling over the 200-day basic chart setup based on risk profiles as a guide to entry using filter setups via Sharepad.
Candlestick pattern across the chart reveals the battleground between the bulls and bears, which suggests a bit of a kerfuffle, with the price dipping below the cloud—or stop-loss channels, which can be inferred from the volatility indicated by the Ichimoku Cloud (or what some might call the ‘squiggly line of fiscal fate’), are areas where traders set their stops to prevent significant losses if the market moves against them.
Relative Strength Index (RSI) lounges lazily below the equilibrium point of 50, which indicates that the security isn’t exactly flexing its muscles. An RSI below 50 but above 30 suggests that while we’re not in the dreaded oversold territory, there’s no cause for popping the champagne.
Accumulation/Distribution line is quite the plot twist. It’s as flat as a pancake, indicating a standoff with neither accumulation nor distribution taking the lead. This can suggest indecision in the market, a period where traders and investors play a tense game of financial chicken.
For the trader who loves a bit of thrill, the weakness in the trend and the cloud breach could be an invitation to short sell, with the caveat that one should keep a hawk-eye on the RSI for signs of a reversal. It’s akin to playing hot potato—exciting but not without risk.
On the other hand, the long-term investor, that sage character who views market fluctuations like a tortoise watching hares race by, may see this as a blip in the grand tapestry. If the company’s fundamentals are sound (we will get this part shortly), this could be a discount sale in the making, an opportunity to accumulate at lower prices.
In short, for Brave Bison, traders might find short-term opportunities to exploit the current weakness. At the same time, the long-term investor must weigh the technicals against the company’s fundamentals before deciding whether to stick around for the long haul or to take a sabbatical. And let’s not forget that technical analysis is more art with a dash of financial astrology—always sprinkle it with a healthy dose of scepticism as I always do.