Although it is probably the case that the declines from the best levels of the summer of 2014 above 4p were rather greater than many fans of Rose Petroleum were hoping for, there are still several positives leg in terms of the technicals to ensure the shares flourish again later this year.
For instance, despite the acceleration to the downside in the autumn below 1.5p, the 200 day moving average remained in an upward trajectory. It has also been the case that a line of support from February last year and now running at 1.5p was successfully tested in December and again for late January. This would suggest that at least while the 2014 support line holds the technical glass here is half full rather than half empty.
The initial target in the wake of the early February rebound is the 200 day line at 2.48p, and a weekly close above this probably leading to a relatively swift retest of last year’s resistance over the following 6 to 8 weeks. In the meantime, any weakness towards the floor of last year’s trend channel at 1.5p is regarded as a buying opportunity for Rose Petroleum.
