(MENAFN- ProactiveInvestors)A miracle happened back in May of this year. Rockhopper a painfully familiar member of a club of 'popular' shares (which have trapped many private investors) stopped going down in price. I'd become accustomed to pretending it didn't exist as LSE:RKH had been trading in a zone with a logical bottom of minus 12p. The circled area on the chart shows the market also was aware it had broken trend with the price taking a flamboyant leap up to 83p once it finished flouncing around at 60p. Needless to say I've got something to say about this 83p. The team at Trends and Targets had published a breakout target of 84p writing 'Target Met' as it was pretty blooming close. However it worries me our 84p was NOT actually bettered as I hate a share not exceeding a target level on its first surge. All too often the implication is of a price being trapped in a range until some news appears capable of moving Rockhopper to a new level. Visually the implication is of it being trapped between 50p and 80p for a while. The important thing is the price has moved to the right of RED and this zone implies its historical downtrend no longer applies. But it DOES NOT guarantee it's really going up – yet. I'm aware the reason you're reading this is to find what signals the price needs give to suggest it's going up with any integrity. At time of writing the share closed the session at 62.5p and looks very like it intends a bottom of 58p. And bounce needs better 71.5p to signal another stab at the 84p level with secondary if bettered at a longer term (or next day) 115p. One thing to watch for will be the 100p level. The price certainly saw a load of activity at this point during 2014 with the result some sort of stutter on the way up is inevitable amongst the Babe* crowd. I've been fairly optimistic but should mention there's a shark in the water. Rockhopper cannot afford CLOSE below the Light Blue line on the chart. If it does it's probably going to bottom at 32p and utterly foul all my calculations for the future. As usual get in touch with any requests for this column. Alistair *Babe (Bail At Break Even) Alistair Strang was founder of www.trendsandtargets.com
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