The volume of shares traded in Quindell has significantly reduced in the last few weeks. The following chart indicates that this year, whenever the number of shares traded has remained constant the share price has stagnated. Whenever the number of shares traded has been volatile the share price has risen.
The share price has solid support indicated by the blue line on the following chart and the candle stick configuration, highlighted, would indicate an imminent uptrend is due.
The next level of resistance will be £1.32p.
It is also worth noting the following events have happened in the past week and could influence the share price.
1. Roble short reduced to less than 0.05%. It is possible some shorters haven’t completely closed their positions so some manipulation of the share price could continue for a few days. We could also get some manipulation whilst those short now take a long position.
2. RNS issued providing information about the completion of the Slater and Gordon deal, accounting changes and new board members. Most of this news was already known so impact will already be factored into the share price. The NED information is new so this could increase confidence and potentially have a positive impact on the share price.
Based on the above information I would expect if the trading volumes stay the same the share price will increase to c£1.32. If trading volumes increase, share price should break the £1.32 resistance level and finish the week higher.
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