The share price of Versarien (LSE:VRS) went supernova between November and January gaining 500% at its high of 122. Since then the price has cooled off and consolidated, and the stock is currently sitting on support derived from the last two bottoms on the chart. Today’s announcement about the company’s collaboration with a ‘world leading Aerospace Group’ has so far had a muted response.
Versarien and its new collaboration partner have agreed to collaborate on research and development projects using Versarien’s proprietary Nanene few layer graphene nano-platelets in base materials and sensory devices.
Neill Ricketts, CEO of Versarien, commented: “From its incorporation in structures to enhance material strength, reduce weight and improve thermal radiation properties, through to utilising the electrical conductivity properties of graphene in sensory devices, the opportunities are enormous. We will be working with this new partner across their numerous areas of expertise to maximise the benefits that graphene can bring.”
This price dip may offer an entry opportunity to those interested in the Versarien story who missed its recent meteoric rise. If current support slips, there’s horizontal support around 67p and 60p. The Relative Strength Index (RSI) is sub-40 and falls to lower support will likely send the stock into oversold territory.
Author: Stuart Langelaan
The author of this piece does not own shares in the company mentioned.