Sound Energy: 100p in sight after the latest shakeout

1 mins. to read
Sound Energy: 100p in sight after the latest shakeout

It is not always wise to follow every heartbeat of a stock or market you may be interested in. But in the case of Sound Energy, this may be the correct thing to do.

There is little doubt that Sound Energy (LON:SOU) has been one of the stocks of the year amongst the bulls, and hence after all the gains things are a little on edge. The recent price path of the shares underlines this concept given the way that there will of course be something of a two way tussle between those looking to take profits on stellar gains, and others wishing to see what they are hoping will still be the best of any upside.

Interestingly enough, in such circumstances it is usually best to wait for the dust to settle, rather than simply catch what could very well be a falling knife. Indeed, the latter is so far what bulls of Pantheon Resources (LON:PANR) have been doing below the key 100p level. But in the case of Sound Energy it can be seen how we have the 70p – 80p zone as a potential basing area, with the long tails of the daily candles over the recent past indicating how there appears to be decent buying interest just below 70p.

Ideally, today’s probe to 67p should be the last shakeout we see. Otherwise, for those who are not so convinced it could be wise to wait on an end of day close back above the initial October support at 72p, with a stop loss just under 67p, before taking the plunge on the upside. The reward for the bulls while above 67p is to chase Sound Energy as high as 100p – the existing 2016 resistance.


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