It is perhaps difficult to believe that it has taken the best part of three years for shares of North River Resources LON:NRRP) to consolidate after the peaks of early 2012 made near 2p. The problem now even after the extended basing on the daily chart is that we are still having to feel our way regarding the possibility of a lasting turnaround. Nevertheless, there are still some helpful bullish clues. The first centres around the way that since April 2013 we have seen higher support points. The first in that year were towards 0.3p, with 2014 and so far this year seeing lows coming in towards 0.4p.
What helps over the near term is the way that in the wake of multiple support points above 0.4p since December, the 50 day moving average now at 0.5p has been recovered in terms of the lows of the day on two successive sessions. This points to a rally being under way, with the message being that a rally within a mildly descending price channel from July last year should be on its way. The favoured destination while there is no end of day close back below the 50 day line is as high as post July resistance at 0.9p plus over the next 4-6 weeks. Only cautious traders would wait on a clearance of the 200 day moving average at 0.64p before taking the plunge on the upside.
