Technical outlook – iSIGNTHIS LTD (ISX) gave the market a sudden surprise last month, in September after staging a sharp rejection from $1.765 high and plummeted to a $0.90 low in just two days.
However, with the bullish combination of a ‘Hammer Candlestick’ and a ‘Breakaway Price-Gap’ last Friday should now draw renewed demand for this share.
The Hammer candlestick pattern is one of the most common and easily identifiable reversal patterns in technical analysis.
The pattern looks like a hammer, pointed out from the inserted chart.
Hammer candlesticks form when shares fall from their opening prices due to selling pressure. However, the shares manage to recover most or all of the losses within the trading period (intraday).
A breakaway gap highlights the start of a new directional move (bullish). This type of gap occurs either after a price consolidation or against the general trend direction.
Combining these assessments, along with the technical appearance we believe a ‘bottomed’ (or base) has been formed from the Hammer candlestick from the $0.60-65 level.
Friday’s breakaway gap is expected to lead prices on towards the region of $1.30-40. Reassess from there.
Company Overview – iSIGNTHIS LTD (ISX, formerly Otis Energy Limited) provides online businesses from around the globe, with transactional banking and a complete customer onboarding solution from remote identity verification to payment processing and deposit-taking services. ISX is a principal member of Visa, Mastercard, JCB, CUP/UPI, AMEX, Diners Club and Discover. Former Names: Telco Australia Limited (TLO), 12/08/2002; Future Corporation Australia Limited (FUT), 09/06/2011; Otis Energy Limited (OTE), 24/02/2015.