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Spreadbet Magazine editor Zak Mir takes a look at the technical position of some of the bulletin board stocks of the moment amongst private investors.
Here are the key points from today’s video:
Independent Resources (IRG)
The shares are attempting to regroup after a sharp decline from the failed gap fill attempt towards 6p of the May gap top towards this level last month.
While there is no end of day close back below the 50 day moving average at 2.32p one would be looking for a partial or even full retest of the best levels of last month.
Only back below the 2p September gap up floor would currently be outright bearish.
UK Oil & Gas (UKOG)
UK Oil & Gas shares have delivered incredible volatility after the September – October double top towards 1.8p.
The latest price action of a double test of the 200 day moving average at 0.88p should be near term positive.
While there is no end of day close back below the 200 day moving average the upside for UK Oil & Gas should be as high as the 1.27p 50 day moving average initially. Only sustained price action back below the 0.8p zone is currently seen as being outright negative.
Xcite Energy (XEL)
The general rule for bombed out private investor favourites with high short interest is to be buying on new near term lows, a strategy which most likely applies for Xcite Energy.
The best way forward now is probably to look to buy into any weakness towards the March price channel floor at 39p.
We currently have W shaped reversal at the floor of the 2014 channel with the ideal scenario being that there will be no sustained break back below the formation’s neckline at 45p ahead of a 4-6 weeks timeframe retest of the former pre October support just below 60p. The 50 day moving average now at 55p makes for a decent initial target for the rest of November.
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