Although it has to be admitted that in the recent past attempting to call the floor in shares of Mariana Resources (LON:MARL) has not been by definition a very profitable exercise, it would appear that there are genuine grounds for optimism on a charting basis. The key to such an argument, even if it only points to an intermediate recovery, centres around two main aspects. The first is the higher low for the stock so far made in January versus the sub 1p floor in December, and the second and perhaps most important event is the latest recovery of the former September support at 1.2p. This provides traders with a bottom fishing opportunity, especially as there is momentum here from the push for the RSI oscillator back above neutral 50. Ideally, there would now not be any sustained price action back below the old September support, although one might have to allow down to the January support at 1.10p as the notional stop loss level on an end of day close basis.
Those who are not so convinced of Mariana Resources rebound potential might wish to wait on a clearance of the 50 day moving average at 1.40p as a momentum buy trigger before wishing to press the buy button. The target once above the 50 day line is former October resistance at 2p plus over the following 4-6 weeks.
