There have certainly been wild swings on the daily chart of Tern over the recent past.
What can be seen here in recent months is the overall saucer / U shape which to this date culminated in the December spike for the stock towards 14p at best. The retracement from this peak would have been the most difficult thing for fans of the company to digest, especially as the fall to a low of 3.5p in January. What is notable though, is the way that despite the January pullback which included a gap to the downside through 7p, it is still possible to capture the price action on the chart of Tern since the end of September within a rising trend channel based at just under the 50 day moving average at 5.64p. This implies that rather than being a negative event, the December / January antics were in fact an overshoot of an uptrend, rather than a peaking out.
On this basis the view here is that the longer the shares remain above the initial 6p October peak, the greater the chance of a partial or even full retest of the December spike. The stop loss is back below the initial February floor of 5p and the timeframe on the upside scenario the next 1-2 months. Only cautious traders would wait on a clearance of the initial February resistance at 7.5p plus as a momentum buy signal before taking the plunge on the upside.
