What can be seen quite clearly on the daily chart of San Leon Energy (LON:SLE) is that over the autumn the shares tracked the downward trajectory of the Crude Oil price, mirroring it as one might expect. The pace of this bearish momentum was highlighted in November with the unfilled gap to the downside through the 1.7p zone. The highlight since this event was January’s brief bear trap rebound from below 0.8p and below the former December support.
But this week sees the charting position back on the front foot in the sense that we have had a fresh rebound off a rising November RSI uptrend line accompanied by bullish divergence, as well as an unfilled gap through the 50 day moving average of 1.05p.
In theory this latest gap completes an island reversal with the November gap and we should be treated to further recovery moves. The favoured destination while there is no end of day close below the 50 day moving average for San Leon Energy would be for the shares to make a beeline for the top of the November gap at 1.74p over the next 4 to 6 weeks. A weekly close above the gap should then lead to 2p plus and / or the 200 day moving average level relatively soon afterwards.
