Ascent Resources: Price channel points to 4p

1 mins. to read
Ascent Resources: Price channel points to 4p

It has not exactly been an easy ride in terms of the recovery at Ascent Resources (LON:AST); but of course, that is where we get the stock market adage regarding a wall of worry.

Given the share price history of Ascent Resources over much of the recent past, it may be understandable that one approaches any fundamental or technical analysis here with a sense of trepidation. However, in such circumstances it is usually wise to focus on the news-flow and attempt to draw conclusions accordingly. It also helps that since last summer at least, the price action has been on a relatively even keel.

The starting gun for the improvement was arguably in the wake of the gap above the 50 day moving average in August, then in the sub 1p zone, something which was effectively one of my so called “rocket launcher” turnarounds. Indeed, we can see how since then support for the shares has come in almost exclusively at the 200 day moving average, now at 1.42p, which is what you would expect in bona fide strong recovery situations.

As for what may happen next in the wake of this month’s announcement of a customer for its Slovenian gas, we see progress within a rising trend channel which can be drawn in from as long ago as June last year. The big 3-6 months target here – while the 200 day line is held – is as high as the top of last year’s trend channel at 4p.

ast chart

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