Due to incredible public demand – someone DM’d me on Twitter, I am engaging in a spot of technical analysis on a trio of small caps du jour. This is despite the overload of coverage from an increasing number of experts in this area over recent weeks and months.
Looking at Ascent on its daily timeframe it can be seen how there has been an extended rising trend channel which can be drawn in from as long ago as August last year to which the stock has been surprisingly loyal. The floor of the channel currently runs at 1.7p, with the implication being that provided there is no weekly close back below this number we should see the shares head to at least 3p over the next 2-3 months. A break of the 10 day moving average now at 2,17p would be the technical trigger for short term traders on the upside.
Although it would appear that everyone and their dog is currently claiming victory over the success of Greatland Gold, the talents of the CEO and the multiple projects the company has always made it highly likely that the stock price feeding frenzy we are seeing at the moment could occur. The only charting value to add here while we see over enthusiastic traders attempt to buy at the top is to note that the eventual near term target here once the dust settles could be as high as 4p. This is derived from a resistance line projection which can be drawn in from as long ago as Q1 2016. It may be worth noting that any retracement here could be as deep as 1p – 1.25p before the big target is reached.
Rather like Greatland Gold, Vast Resources is another situation which was a “most likely to succeed” and is now coming up trumps. The August cross of the 50 day moving average below a rising 200 day moving average (what I call a Zak Cross) was a very strong leading buy signal – explaining the sharp bounce off the floor of last year’s rising trend channel. While above the 200 day line at 0.4p one would expect the stock to hit the 2016 resistance line projection at 1p.
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