Shares of Braveheart Investment Group plc (LON: BRH) rallied 23.2% despite the lack of significant releases from the investment holding company. Investor interest in the company has spiked higher after the downtrend that followed its February rally.
The company’s last announcement was on March 1, when it revealed that the clinical sample pipeline for the COVID-19 test developed by its investee Paraytec was fully operational.
The company’s shares had since found support at the 52-54p level and bounced off the area twice before the current rally kicked off.
Bullish investors have stepped in to defend the area and pushed Braveheart’s shares higher despite the lack of any significant fundamental triggers.
The company revealed that it did not know the reasons behind its February rally. The same could apply to the current rally. However, given Braveheart’s shares trade on a public exchange, a simple surge in buyer numbers is enough to trigger a rally.
Traders who have missed the current move should wait for a significant pullback before opening new positions. The company’s share price looks a bit overextended at the moment, which creates an unfavourable short-term risk to reward setup.
I’ll monitor the company to see if any new announcements could explain the recent rally, but this may not materialise. The move could be a function of the markets demand and supply dynamics.
Braveheart share price.
Braveheart shares rallied 23.23% to trade at 87.50p after rising from Wednesday’s closing price of 71p.
