Only way is Wessex!3 Feb 2014 16:48
Zakmir Blog today: Target 1.40!!
While it may be admitted that Friday’s sharp rise through the 50 day moving average at 0.38p for Wessex Exploration could simply be a one day wonder in terms of a dead cat bounce after recent significant losses, it does appear that all the major pieces are in place as far as the technicals are concerned for an intermediate rally in this minnow situation. For instance, we have extended RSI uptrend line from deeply oversold levels running from as long ago as the end of July. We also have a rising trend channel in place in the price window from the same time running level with the 50 day moving average, and perhaps best of all, last week’s solid close terms of the share price delivered an exhaustion gap fill reversal from early January as a strong buy signal.
If you add in the way that the weekly close 0.42p was well above the former December 0.36p floor, we are looking at a likely intermediate rally. The favoured destination at this point is towards the 20 day moving average at 0.94p over the next 1 to 2 months, but with an eventual target for the middle of 2014 as high as the top of last year’s price channel at 1.4p. At this stage only a weekly close back below January intraday support at 0.28p would be outright bearish for Wessex Exploration.