LGO Energy: Technical target points towards 0.25p

1 mins. to read
LGO Energy: Technical target points towards 0.25p

It may just be the spirit of Christmas, and it may not last. But it does feel like some of the former Bulletin Board Heroes such as Cloudtag and Amur Minerals are back in business to end 2016.

LGO Energy (LON:LGO) was the company that got me started in small caps charting some three years ago. While I would not say it has been an easy journey, it is fair to say that if you can successfully chart the minnows, you can probably chart/trade anything.

There is decent basing on the daily chart, with the trigger event the break back above the 50 day moving average in the middle of last month. This effectively changed the trend from bearish to recovery mode, although it is perhaps a little early for the longs to sing victory. Nevertheless, it should be the case that while there is no break back below the 50 day line at 0.10p, one would be assuming a decent run to the upside over the next 1-2 months.

The favoured destination at this stage is regarded as being the top of a rising trend channel drawn from April, with its resistance line projection heading for 0.25p. In the meantime any dips towards the 50 day line to cool off the overbought RSI can be regarded as a buying opportunity.


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