Management Resource Solutions in ‘golden cross’ buy signal

Although it has not exactly been a smooth ride in recent months on the daily chart of Management Resource Solutions, it does appear that the bulls will be in charge once again over the near term in quite a significant way.

Management Resource Solutions (MRS): Run-up to golden cross targets 35p zone

Management Resource Solutions shares have perhaps taken rather longer than expected to consolidate in the aftermath of the sharp rally seen at the beginning of this year. The technical analysis is also somewhat hurt by the interrupted data, and the fact that this is not the most actively traded of shares. But at least it can be said that in the past couple of months most of the bullish triggers have started to align quite well. In particular, for September we appear to be in the run up to a golden cross buy signal between the 50 day and 200 day moving averages. This, along with the rebound off the floor of a rising trend channel which can be drawn in from as long ago as the start of the year, would suggest that at least while there is no sustained price action back below the 10p July support zone we could see a 3-4 month target as high as 35p at the 2016 resistance line projection. Only cautious traders would wait on a clearance of the initial September resistance at 13.25p before taking the plunge on the upside.