Zak Mir latest commentary.... 3.5p5 Jan 2016 16:17
It can be said of the recovery at Coms that this really was a situation where the technicals have led the fundamentals, something which is said on the basis of the magnitude of the post December recovery we have been treated to so far. The key to the revival here has been the extended base, after the massive gap to the downside in February, an event which at the time appeared to suggest that the company could have serious fundamental problems.
However, courtesy of the long base building process and the way that the shares managed to do this via a cup and handle reversal formation, over the past month we have been treated to a near vertical comeback. The point to remember now is that given the cup and handle, one of the strongest formations in the charting book we can be highly ambitious as far as how high the near term rally could stretch. The favoured destination at this point is the top of a wide rising trend channel from February, with its resistance line projection heading as high as 3.5p over the next 4-6 weeks. This is valid while there is no end of day close back below the 10 day moving average at 1.62p.
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