Does ROSE have Thorns?

Wednesday, 9th July 2014 15:22 - by Osakisushi

ROSE Petrol (LSE:ROSE) has been featuring heavily in the discussion areas. When I zoom out and view its long term potentials, they don’t suck!

At time of writing, it is trading at 3.5p on a cycle which indicates any further movement above 3.575p should find 3.925 rather alluring. Secondary if bettered is apparently at 4.5p but some caution is recommended at the 4p level due to the price stuttering at such a point on several occasions during June.

However, it’s the Big Picture which interests me rather a lot.

The BLUE line on the chart below perhaps looks meaningless but it delineates CLOSING prices since 2009. The suggestion given is this is a share mapped by CLOSE rather than intraday motions and thus, we should take CLOSURE above PINK at 4p rather seriously. Such an event will suggest a longer term growth cycle commencing to 5.65p initially with secondary, if bettered, at 7.85p.

In summary, it is a share with potentials. In the immediate future, I’m finding it easy to calculate motion to the 4p level or close enough for Govt work. I can even calculate a secondary above such a point but where the price CLOSES will be critical. In current market conditions, I’d tend to suspect the 4p level will be ‘it’ in the absence of positive news from the company.

Oh, and if it’s all going wrong, the price would need break RED at 2p. Visually pretty unlikely and I’m quite impressed with its second movement above BLUE thus far. Generally this is the goodie, so fingers crossed.

Sorry I’ve missed a couple of weeks. As can be guessed, analysis is my full time job and if I’m busy at work, I’m not able to provide opinions on shares such as ROSE. Good luck with it.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.