Last week’s trading ideas both proved profitable (so far) with Shearwater Group slicing through the resistance like a hot knife through butter, and Intercede Group also offering an entry and now moving towards the next resistance point.
It’s worth mentioning that Shearwater Group announced an ABB this morning at a price of 240p. Given that the closing price was 290p this is a 17.2% discount – could the company not have done this higher? I’ve put in for this given that the current spot spread is 260-270p. Usually, placings tend to trade down to their placing price immediately as traders build in profit by shorting the equity once their allotment is confirmed. That may still be the case, and if there is no support towards the placing price I’ll dump the shares (assuming I get an allocation).
The issue with SETSqx stocks is that the Normal Market Size is low and unless you’re playing for a longer term move it’s pointless buying them as the spread will impale any scalpers.
Boohoo plc
Liquidity is not an issue with online behemoth Boohoo though. I had fun a few weeks ago trading this for scalps on the intraday, and since then it’s zoomed up over…
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