The call here previously with relation to how much Greatland Gold might retrace after its blow off run of late was a guess in the 1p – 1.25p. The may have sounded painful and perhaps a little harsh, but in the cruel world of small caps it is better to be cruel in order to be kind. This allows those who have been on the right side of a stock to deploy their cash most efficiently, and of course allows those who have yet to get on board not to overpay.
The latest configuration here on the daily chart shows how the stock is currently standing just below the last two intraday support points at 1.60p. An end of day close back below this – a weekly close for the cautious, would suggest a fresh move down to the former 1.08p intraday low from the start of October. This is where the 1p – 1.25p support zone was derived, and ties in with the rising 50 day moving average rising towards 1p. Those who wish to play the momentum game here though, would wait for an end of day close back above the 10 day moving average at 1.93p, but at the moment it does look as though the best way forward here would be to buy on dips towards 1p. The big picture target here as stated before is expected to be 3.5p on a 3-4 months timeframe.
Clearly, we are rather low on historical data here for Reabold Resources. However, there is enough on the daily chart to allow us to draw a rising trend channel in place since September. Rather conveniently, the floor of the channel currently ties in with the present position of the 50 and 200 day moving averages at 0.71p. The technical message at the moment is that provided the shares remain above the 50 day / 200 day lines, we should be treated to a journey over the next 2-3 months towards the 2017 price channel top at 1.3p.
2017 has been the year that Thor Mining shares finally hit the high notes, although the pullback from the February / March spike was somewhat disappointing. However, it could be classed as a positive retracement, as since then we have seen the 200 day moving average now at 0.94p rising throughout. This is a symptom of a stock in full bull mode, something which makes the fresh takeoff over the past month all the more understandable. Indeed, the trigger for the latest rise was a technical one, the “Zak Mir Cross” where the 50 day moving average crosses below a rising 200 day line. This cross often accompanies the strongest of rallies, and it is to be hoped that we are seeing such a phenomenon now. The favoured upside scenario over the next 2-3 months is the top of the 2016 price channel at 2p. Only sustained price action back below the post May resistance in the 1.10p – 1.20p zone would question the ultra bullish outlook.
UK Oil & Gas:
The fear with UK Oil & Gas after its stellar run was that it could have been a flash in the pan – after a double top towards 10p, and a subsequent gap to the downside last month through 6p. However, since then we have seen fresh support come in at former July resistance at 4p, well above the 200 day moving average now at 3.5p. The multiple support points we have been treated to above the 200 day line in recent weeks is an extended bullish signal, something which suggests the overall pattern here since July is a bullish falling wedge pattern. The conclusion on this basis would be that as little as a weekly close for UK Oil & Gas at 6p could be the buy trigger for a return to 10p plus early next year. But as in the case of all technical calls, one should be strict on waiting for the 6p buy trigger to be activated before taking any action.