It is fair to say that few would argue with the observation that as far as the recent past has been concerned for Starcom PLC (LON:STAR), volatility has been the over riding characteristic of the share price. This is certainly the case in the aftermath of the late December spike and subsequent retreat. Indeed, that month’s approach of the 25p was dramatic even by the standards of the microcap area.
The good news technically is that since then it would appear we have been treated to positive consolidation, something which should eventually lead to the shares revisiting their best levels of the year over the next couple of months or so. This is especially said on the basis that it is possible to draw a rising trend channel on the daily chart from November, with the floor of the channel currently running at 8.5p.
This is the preferred zone for bargain hunters to buy into. That said, given how long it has taken for the stock to rehabilitate itself after the December spike it may be that some traders would like to see a momentum buy trigger such as an end of day close back above the 50 day moving average at 9.91p. If this trigger is activated by the end of this month one would be looking for a journey as high as the September price channel top at 16p, 1-2 months after the 50 day line is cleared.
