The post December V shaped recovery for shares of Haydale Graphene Industries (LON:HAYD) always looked as though it could serve up a significant rebound in terms of the price action after the declines from April, but it would appear that even the optimists may be caught off guard by the momentum behind the turnaround. The first clue this could be the case came from the way that the stock melted through the still falling 200 day moving average at the beginning of February.
As is normally the case in the strongest of technical situations, we have seen no need for the 200 day line to be tested as new support with a progressive acceleration higher being the result. In fact, even being extremely overbought in terms of the RSI at 70 plus in recent weeks has not slowed progress. Therefore the view to take is that at least while there is no end of day close back below the 10 day moving average at 123p one would be looking for further significant gains. The favoured destination for Haydale Graphene is expected to be the top of a rising May price channel at 240p over the next 2-3 months, especially after the latest 50 day / 200 day moving average golden cross buy signal.
