Global Resources Investment Trust turnaround targets 15p

1 mins. to read
Global Resources Investment Trust turnaround targets 15p

A Master Investor reader highlighted me to the attractions of the Global Resources Investment Trust (LON:GRIT) chart, and it seems worthy of an update. It may be an obvious, but nevertheless useful, thing to suggest that in technical analysis the oil tanker analogy is a very good one. The implication is that the longer a stock or market takes to turn around after a decline, the more robust the subsequent rally is likely to be.

This is what we have been treated to in recent months at Global Resources Investment Trust, with the investor who alerted me to this stock maintaining that it is the “best chart he has seen this year.” While I may beg to differ in terms of what I have so far found to be the most bullish looking situation, I would admit that as far as being a relatively non volatile play with positive prospects this is difficult to beat.

What we see here is a stock trading within a rising trend channel which can be drawn from this time last year. The floor of the channel runs level with the 50 day moving average at 8p. This would suggest that only a weekly close back below the 200 day moving average, now at 5.95p, even begins to imply there will not be a journey towards the top of the channel at 15p plus over the next 2-3 months.


Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *