One of the best ways of progressing in investment is going with a combination of technical and fundamental factors. Currently, at Victoria Oil & Gas (LON:VOG) it would appear that both are in alignment.
Victoria Oil & Gas has been one of the star performers in the small caps space since the beginning of the year, something which may actually put some people off in terms of what the potential upside may be for this Cameroon focused group.
The big headlines on the fundamental front of late have centred on the gas deal just announced with Bowleven (LON:BLVN). This followed the company’s announcement that it had achieved strong sales in January and last month was set to meet Cameroon’s power needs.
As far as the daily chart is concerned, there has been a very positive-looking consolidation within a symmetrical triangle, one which has ruled the roost since the end of last month. The view now is that the range is so narrow within the triangle a significant breakout is imminent.
As little as an end of day close above the one month resistance line at 70p could take the shares up to the top of this year’s price channel at 100p over the next 1-2 months. Only back below the 50 day moving average now at 54p delays the upside scenario.