Chart of the Day: Hague & London Oil

Rather interestingly, even for those late to the recent share price rise at Hague & London Oil, there would appear to be an opportunity to get on board in the wake of the recent consolidation and news.

Hague & London Oil (HNL): Above 200 Day Line Targets 20p

It was as long ago as 4 August when Hague & London Oil announced a memorandum of understanding with ENGIE Global Energy Management in which the latter would offer gas take off deals. This was described by Hague & London as being unique, and it appears that the market is progressively coming to the same conclusion, if the recent share price recovery is anything to go by. Indeed, we are currently looking at the daily chart sporting a bull flag formation resting well above the 200 day moving average at 7.32p. The implication is that at least while there is no end of day close back below the 200 day line we can expect significant upside from what is likely to be a mid move consolidation. The favoured destination on the upside is regarded as being the top of a broadening triangle in place since March and now pointing as high as 20p. This is expected to be hit as soon as the next 4-6 weeks. At this stage any dips towards the 200 day moving average are regarded as buying opportunities, especially given the way that we have seen such a sharp rise for the stock today.