I thought I'd start this analysis with a really long term view using the daily chart as it shows the power of RSI trendline very nicely. We can also see the big bearish divergence at the recent high.
What's interesting here is that this RSI uptrend support was hit again only a couple of days ago. In the past this has been the trigger for some decent rises but you never know when these trendlines are going to fail so is there anything else to support the hypothesis of a rise?
What's interesting here is that this RSI uptrend support was hit again only a couple of days ago. In the past this has been the trigger for some decent rises but you never know when these trendlines are going to fail so is there anything else to support the hypothesis of a rise?
In this near(er) term view we can see that price is at uptrend support and the 61.8% Fib as well as having formed a double inside bar pattern so there should be a decent move one way or the other. You can just make out that long term RSI support at the bottom of the chart too.
I would definitely have stops on this below 6.5p as it can be very volatile and, due to the nature of these penny shares, quite unpredictable too.
Risky but may be worth a long at these levels.
I would definitely have stops on this below 6.5p as it can be very volatile and, due to the nature of these penny shares, quite unpredictable too.
Risky but may be worth a long at these levels.