The stock of Mercia Technologies PLC (LON:MERC) gapped down by GBX 1.01 today and has GBX 41.39 target or 8.00% below today’s GBX 44.99 share price. The 6 months technical chart setup indicates high risk for the GBX 97.14M company. The gap down was reported on Nov, 24 by Barchart.com. If the GBX 41.39 price target is reached, the company will be worth GBX 7.77M less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 3.25% or GBX 1.51 on November 24, hitting GBX 44.99. About 15,790 shares traded hands. Mercia Technologies PLC (LON:MERC) has risen 2.30% since April 26, 2016 and is uptrending. It has underperformed by 3.11% the S&P500.
Mercia Technologies PLC is a national investment company. The company has a market cap of 97.14 million GBP. The Firm is also engaged in the technology transfer business. It has a 535.6 P/E ratio. The Company’s investment objective is to generate capital growth for shareholders in the creation, funding, incubation and development of technology businesses with an emphasis on the Midlands and the North of the United Kingdom.