It can be seen quite clearly on the daily chart of Noricum Gold PLC (LON:NMG) since September we have suffered an extended reversal in the wake of the spike to the upside of that month towards 0.7p. However, the decline by the beginning of November had basically run its course, with a low that month coming in at 0.18p. What is interesting since then apart from the odd false dawn rally attempt, is the way that the old November floor has essentially held.
Indeed, there has only been a narrow bear trap rebound from below this level in February when the shares briefly hit 0.17p. Of equal importance over the autumn period is the way that an extended RSI uptrend line can be drawn from the middle of November marking out bullish divergence over recent months.
The conclusion to draw is that as little as a weekly close back above the September resistance line/50 day moving average of 0.24p would be enough to deliver at least an intermediate revival here. The favoured destination above the 50 day line is as high as the post November resistance of 0.4p, a level which ties in with the area of the 200 day moving average currently at 0.38p. The timeframe on such a move is seen as being 1-2 months after the September resistance line is broken.
