Bowleven ready to make an assault on 80p?

Below is an excerpt from our Zak Mir & SBM Q1 guide concerning Bowleven (see image below and click on it if you’d like a copy that has a whole load more info) – 

“Technical overview – Shares of Bowleven have actually been in a mildly rising trend channel on the daily chart since June, with the floor of this channel running currently at 62p. The implication of this is that while there is no sustained price action back below the 59p August intraday low, the upside here should be back towards the post September resistance zone at 80p plus. In fact, the RSI looks to me as if it is just beginning to turn higher and so will provide the fuel to carry Bowleven back towards the top of its range during the 2nd half of 2012.”

Well, with the look of the price action over the last 10 days, aswell as the updated chart formation below, our confidence in this key constituent of our SBM Dream Oil Explorers portfolio is growing and it looks to us as if the 80p level will be breached in the short term. We have been adding in recent weeks.