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Vela Technologies Shares Have Risen 9.33% in One Month. Is It a Buy?

Simon Mugo trader
Updated 7 Apr 2022

Trade Vela Shares Your capital is at risk

Key points:

  • Vela Technologies shares have risen 9.33% in one month. Are they a buy?
  • The company recently acquired shares in Igraine, a med-tech investment firm.
  • Vela’s prospects appear very promising given its healthy cash balance.

The Vela Technologies PLC (LON: VELA) share price has risen by 9.33% in one month, and some investors wonder whether now is the right time to buy VELA shares.

Vela shares had been falling for multiple months after spinning higher in early September 2021, but the downtrend seems to be over now as the company’s shares bottomed out in March this year.

Also read: The Best Shares To Buy Now.

The rally in Vela shares occurred shortly after bottoming, and it seems like we have seen the end of the downtrend for now. However, the recent uptrend faces a significant hurdle at the 0.40p to 0.41p resistance level, which must clear before the rally can continue.

At writing, Vela shares had been rebuffed from the 0.40p resistance level and were headed lower. While this does not bode well for the uptrend, it does not mean that the uptrend is now over. It usually takes several attempts for an asset to break above or below a critical level.

The last significant announcement from Vela was regarding its acquisition of a 28.82% stake in Igraine plc, making it the largest shareholder in the med-tech investment company.

Vela’s rationale for investing in Igraine was to deliver fast-track returns to its shareholders after promising to be more active in identifying opportunities that could reward its investors in a shorter timeframe.

The company also noted the challenging stock market conditions but promised to continue actively seeking compelling investment opportunities with a real potential to generate returns for its shareholders.

Vela acquired the majority stake in Igraine for a cash consideration of £430,705. Igraine has a similar business model to Vela’s in that it invests in innovative breakthrough technologies and commercially attractive discoveries in the health, med-tech and life science sectors globally.

Igraine recently invested in Excalibur Medicines Ltd, which has exclusive rights to and owns the patents on a drug, AZD1656, a potential treatment for people with diabetes suffering from COVID-19 and other respiratory diseases.

Vela’s prospects look pretty promising as it has a healthy cash balance and is constantly screening for more investment opportunities for its shareholders, making it a safe long term bet.

*This is not investment advice. Always do your due diligence before making investment decisions.

Vela Technologies share price.

Vela Technologies share price 07-04-2022
Source: Tradingview

The Vela Technologies shares price has risen 9.33% in one month. Will it keep rising?

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading