Bowleven: Break of 35p could still lead to 45p

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Bowleven: Break of 35p could still lead to 45p

It can be said quite justifiably that in terms of making people wait, it is not only Donald Trump who is an expert. Bulls of Bowleven (LON:BLVN) have also had their patience tested.

It would appear that the perfect stock to look at on 15th March – the Ides of March – is explorer Bowleven, where there have been all sorts of shenanigans of late. These have been centred on the battle between the board and rebel/activist shareholders. The result of all of this is that most of the board of the Africa focused group have headed for the hill. Indeed, we are left with only the Chairman and Chief Operating Officer.

It has to be said that there is actually an element of irony in terms of the timing of the coup, given the way the share price – always a major part of any gripe with a listed company – has risen quite sharply since the beginning of the year.

The view at this stage from a technical perspective is that we are essentially in bull mode while the floor of last year’s price channel/50 day moving average at 30p remains unbroken on a weekly close basis. Otherwise, it could be that momentum traders wish to wait on a clearance of former February resistance at 35p on an end of day close basis before targeting the 45p zone at the top of last year’s trend channel.

blvn chart

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