Bulls returning to the fray14 May 2015 16:41
Bulls returning to the fray for Mercom Oil and Sands Plc LON:MMNO appears to be rather more palatable than it did even a few weeks back. For instance, the RSI now around the 13 level is extremely oversold and as oversold as it has been at any time over the past couple of years.
This would suggest that we are due a significant snap back imminently, and that it may be worth being in place here on the long side from this point on, it seems fair to target the area towards the 200 day moving average at 13p
When you add in the way that this oversold state it appears to catch the stock at the floor of an extended wide price channel from the summer of 2013 and there is another driver for the Bulls,a momentum buy trigger, which at this stage is seen as being ideally an end of day close back above the 20 day moving average at 6.98p.
MAJOR Volume Increase for Mercom Oil and Sands Plc:
20-Day Average Volume – 128,250
50-Day Average Volume – 120,579
100-Day Average Volume – 77,958
28/04/2015 Volume 883,860
27/04/2015 Volume 308,559
https://www.google.co.uk/finance?q=LON%3AMMO&ei=1bNUVcHDKMXIUZGegaAH