Mariana Resources Plc (LON:MARL) shares have created quite a splash on both a fundamental and technical perspective over the past couple of weeks. But it is the technical position which is being highlighted here. What can be seen currently is the way that we are in the aftermath of a sharp spike towards 3p and then a retreat back towards former pre spike resistance from December and January towards the 1.5p level.
The ideal scenario of course is that this old resistance would become new support, and so far it would appear that with the help of the 20 day moving average of 1.48p and still rising, the idea could be achievable.
This is especially the case given the way that we have been generally treated to higher lows for the stock since the December floor was made towards the 1p level. It is of course interesting to note the way that the shares have had as volatile a ride in February as they did in September. Although in the autumn the stock continued to fall after the spike. But this time thE view is that we may actually see a retest of the February high, with the best buy trigger this time being an end of day close back above the 10 day moving average at 1.73p, to give an initial target through 2.5p over the following 2 to 4 weeks.
