RE: 50p Q3 spud target25 May 2024 09:58
Here is the chart pattern that I think is emerging. An ascending channel. You can read the definitions and see the pick here.
https://www.investopedia.com/terms/a/ascendingchannel.asp
From Brave AI…
“ An ascending channel chart is a powerful pattern that can help traders identify an upward trend and potential trading opportunities. By understanding the key features and trading strategies, traders can use this pattern to make informed decisions and potentially profit from the market.”
The key features, technicals aside, are obviously news driven. Then the technicals come into play.
So far we have climbed to the first step.
That’s up from 10p and established an upper resistance of 20.8 and a support of 14.57. The length of the step is the gap between the last event, likely Hereford flipping & the IPO being oversubscribed and the next event.
The next event is conclusion of the scoping study. Obviously an unknown event can change this up or down.
Here you can see the flat step and the channel.
https://uk.marketscreener.com/quote/stock/HELIX-EXPLORATION-PLC-168244881/graphics/
So in the meantime the stock should sit between the two bands until the next news. It may break up in anticipation or down on a delay. Atm it’s peak and consolidated and is probably slipping a little based on PI boredom. Afterall it’s been two weeks!
Let’s assume all is on track. Well in that event the next step should be up and the height of the rise will be dependent on the content of the news. So what’s in the scoping study.
That step will then establish an upper and lower band. A channel will then appear between the two steps as in the first link opening up future predictions around the next step and beyond.
Albeit one always has to factor in reality with forecasting.
That reality comes from the news content, peer analysis, financials and of course the Bod and other market dynamics.
So one can atm assume there is no reason why we shouldn’t establish a higher step on the next news and then a higher one again thereafter say on rig mobilisation and then drilling etc.
So we should follow the pattern until we get kicked off either up or down.
Hopefully that is a little more helpful than a wet finger saying 16p or 27p by next week!
The SP will very likely move north but how high is as yet unknown. But at least in theory that means higher highs are ahead of us putting buys in profit and building the next resistance levels.
Usual caveats
Trek
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