The following are reasons why I believe the Quindell share price will increase on Tuesday 26th May 2015.
1. Share Price Support
The Quindell share price has good support as indicated by the green line on the following chart with the resistance line indicated by the red line having been broken.
This on its own is an indicator that when the market next opens that the share price will rise.
2. Past Share Price Trends
Whenever the share price is flat it has on every occasion, this year, resulted in the share price increasing. Please refer to the following chart. Red arrows indicate when share price has been flat and the green arrows what has happened after a period of stagnation.
It is also worth noting that the longer the period of stagnation the greater the following share price rise. We are now currently in a period of the longest stagnation period for the year.
3. RNS announcement 22nd May 2015
The RNS announcement regarding the FCA approval of the Slater and Gordon deal happened on a bank holiday weekend. It is highly likely many who would have traded on this positive information will have been taking an extended break. They will make their moves in the market on Tuesday.
4. Robles closing their short position
Roble are closing their short position with a further 0.24% reduction recently announced. If the latest reporting figures are up to date Roble need to purchase 1.24% of available shares to close their position.
To do this they will need trading volume and this will only happen if movement in the share price. Most private investors who remain will not sell at the current or a lower share price.
This again will put upwards pressure on the share price.
The above points would indicate, in the absence of any other news that the upwards pressure will result in an increased share price.