Zak Mir21 Apr 2016 21:13
Daily round-up
Serabi Gold (SRB): Broadening Triangle towards 8p Plus
What can be seen on the daily chart of Serabi Gold is the way that the overall pattern here has been that of a broadening triangle which has been in place for as long ago as the beginning of 2014. The big development over the past couple of months has been the consolidation the stock has made over the 200 day moving average at 3.30p. Indeed, the latest twist has been the clearance of late March resistance at 4.5p. The more closes the stock can manage above this level, the greater the chance of a fresh sustained move to the upside. The initial target is clearly the former January 2015 price action at 6p plus over the next 4-6 weeks. However, the 2-3 months target is as high as 8.5p at the 2014 broadening triangle top. Clearly at this stage only sustained price action back below the 200 day moving average would really be a significant delay to the upside scenario. But at least any initial retracement would cool off the overbought RSI at 70 plus, and improve the risk / reward of going long.