Synairgen Stock Price Analysis: Breakout to Downward Channel?

• SNG stock has been slumping throughout the year since March and it has formed a downward channel pattern.
• The stock trades very closely to its support at £6.7 but it has not breached it even once.
• Investors have gotten trapped into the stock and only a big breakout could give them some relief at this point.

Synairgen Plc is a healthcare company dealing in provisions of respiratory drug discovery and development. The company was founded in 2003. Synairgen Plc has been highly inconsistent and has not seen positive operating profit for the past 5 years. This is a major reason why the stock has slumped to such low levels, proving the lack of trust among investors.

Technical Analysis for the Stock

The stock has been slumping all through the year thanks to the company’s poor financial performance. The stock has taken support from £6.7 but this would be of no use until and unless there is some positive news so that the investors could place some trust in the stock.

September will see the latest earning reports for the company and that may decide the future of this stock much more than any technical factor. 

The upper trendline is very close to the current price and we might see a breakout if there are increased volumes. If that is the case, £12 and £15 levels will act as a target for the stock. 

If the stock does breach the current support levels, then there is just one support below this at £5.5 so there cannot be any downside prediction for the stock at present.

The hourly chart shows inconsistent volumes in the candles which makes it a highly untradeable and unpredictable stock. Technical factors do not work in stocks like these which are stuck, so predicting any future movement becomes highly difficult. Since the earnings reports are due in September, we should expect more sideways movement for the stock before seeing any big move.

Conclusion

The stock has slumped so much that investors do not wish to enter it at any price. Movements have become highly slow and news-related factors currently drive the price, so buying such a speculative stock is not currently advisable. 

Major technical levels

Major support levels: 6.7£ followed by 5.5£.

Major resistance levels: 8.9£ followed by 11£.