Chart of the Day: Highland Natural Resources

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Chart of the Day: Highland Natural Resources

Highland Natural Resources was one of the better early 2016 calls on a technical basis that I made, with perhaps the lucky part being that the fall from 70p plus was so quick there was no real opportunity to buy at what became the top.

Highland Natural Resources (HNR): Exhaustion Gap Reversal Targets 50 Day Line

Looking at the daily chart of Highland Natural Resources since the beginning of this year, this has been a volatile situation, with the big twist being the way that, Grand Old Duke of York style, the shares march up and then back down again. The temptation will have been for traders to buy the post June dip and be hurting rather badly now. The trick though in such circumstances is to wait on the biggest, best and clearest of signals, and it may be said with an end of day close today above the earlier July exhaustion gap at 21.5p, this is what we have now. Indeed, this exhaustion gap reversal also snaps the recent falling wedge pattern from May at 20.5p, which implies that while there is no end of day close back below this number we could be treated to further significant upside. The favoured destination at this point is the 50 day moving average at 39p, an area which could be hit as soon as the end of next month. In the meantime any dips back towards 21.5p and the gap top can be regarded as buy opportunities.

highlands natural resources

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