Chart of the Day: Ncondezi Energy

Ncondezi Energy has been something of a Robert the Bruce situation for the bulls. “If first you don’t succeed, try, try again. But overall the charting pattern remains solid.

Ncondezi Energy (NCCL): December Price Channel Targets 9p

What can be seen on the daily chart of Ncondezi Energy over the recent past is a highly volatile situation, with the trading range between 3p – 6p and apparently turning on a dime. However, if one steps back a little it is evident that the post December price action has been relatively robust, with this being the case since the vertical push through the 200 day moving average in December towards the 2p zone. What is encouraging about tests for support ever since is the way they have generally been loyal to the floor of a rising trend channel from December, with its support line currently running at 3.5p. The assumption to make at the moment is that provided there is no weekly close back below the 8 month uptrend line we should anticipate further significant gains. The favoured destination at this point is as high as the late 2015 resistance line projection now pointing at the 9p level. The timeframe on such a move is regarded as being as soon as the next 2-3 months. Only cautious traders should wait on a clearance of the June intraday peak at 4.74p before pressing the buy button.