Interesting upside for the Relatech stock, an innovative SME listed on the Aim market since 2019, which develops solutions in the four fastest growing technological areas: digital customer experience and marketing automation, artificial intelligence and big data analytics, cybersecurity and blockchain, internet of things and industry 4.0. It can be read in the article by Nicolò Volpato, technical analyst of SIAT financial markets, according to which the stock has everything to start up again with a potential graphic target which, if reached, would almost double its stock market value.
On a technical level, writes Nicolò Volpato, “after reaching its all-time high on 27/01/2021 at € 3.29, the stock underwent a correction of 61.8% (3rd level of Fibonacci retracements) compared to the strong bullish movement that preceded the split of the shares which took place on 01/25/21. The split took place through the assignment of 3 new ordinary shares for each old ordinary share held.
In this corrective phase, the price remained within a bearish channel also called flag or flag, until Friday 02/07/21, the day in which the stock, supported by significant rising volumes, broke the bearish dynamic resistance. resulting in an excellent long entry signal.
These graphic conformations fall within the technical continuation figures; they frequently occur within a very strong movement, supported by volatility and high volumes and represent pauses in the trend destined to resume.
In the last few sessions, also the indicators RSI and MACD showed a recovery in momentum which gives further support for a long entry with projection of price targets at € 3.28, € 3.72 and final target at € 3.98 ″.
Nicolò Volpato, however, specifies: “Considering that it is a subtle title, it is advisable to always remain cautious and to use stop losses in order to safeguard the invested capital if the performance of the underlying goes in the opposite direction to initial expectations. The recommended stop loss is at € 2.50, a situation that would see the breakout of the bearish channel denied with the return of prices within it ”.
Relatech is a constantly evolving company, writes Nicolò Volpato, “in recent years it has welcomed new companies such as Cynet, Nutanix and Barracuda into the group and has recently finalized the acquisition of Mediatech.
On a financial level, the year 2020 ended with € 17 million in total production value up 4.2% compared to 2019 despite the year of the COVID-19 pandemic. The margin was 13.5% with a net financial position showing cash available for € 4.6 million.
The turnover for the 1st quarter of 2021 is indicated at € 5.6 million, up 40% compared to € 4 million in the first quarter of last year. The share of recurring revenues stands at € 1.5 million, up 47% compared to March 31, 2020, while revenues from abroad increased by 16% “.