AMGO Share Price Forecast(LON: AMGO): 4.33p Support Remains Vulnerable

Today’s AMGO share price forecast comes off the opening gap seen at the start of the session, which the bears have almost succeeded in closing off. This Monday, the AMGO share price retains a 1.18% uptick, even as bearish pressure erodes the massive 180% gain attained on 7 and 8 March 2022.

On 7 March, the AMGO shares soared after the subprime lending regulatory watchdog in the UK okayed the company to resume lending, subject to the approval of a business rescue plan by the High Court of London. The call came two years after the subprime lender stopped issuing loans amid accusations it mis-sold loans to the public. The Financial Conduct Authority (FCA) said the latest rescue plan was a much-improved version of a previous one it opposed for not adequately addressing claimants’ compensation. 

A call of schemes meeting was okayed by the London High Court last week, where creditors will be able to vote on approving the new business scheme or a wind-down scheme. The votes will come up in May 2022. The FCA continues to evaluate AMGO’s lending ability. Its official position is that the company is not in a position to resume lending until it can show evidence to that effect. The situation has eroded the earlier upbeat sentiment on the FTSE-listed stock after the 7 March FCA announcement, leading to a gradual but steady erosion of the gains of 7/8 March 2022.

AMGO Share Price Forecast

The intraday decline appears set to test the 4.330 support level. A breakdown of this level opens the door for the bears to push the price towards the highs of 23 February – 2 March at 3.462. Below this level, 2.690 and 2.016 are additional targets to the south. 

On the other hand, a bounce off the 4.330 support allows the bulls to aim for 5.102. 5.456 and 6.484 are additional northbound targets that are within reach. 6.998 and 8.414 also serving as additional targets to the north, which presently remain out of the reach of the bulls.

AMGO: Daily Chart

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