As far as shares of Oxford Pharmascience are concerned over the near-term it can be seen on the daily chart how we have a classic technical turnaround in place. The highlight for short term traders, especially since the start of the year is the way that they have been treated to an unfilled gap through the 50 day moving average in January, an event which is typically seen only in the strongest of recovery situations.
When you add in the way that last month the longs were treated to a golden cross buy signal between the 50 day and 200 day moving averages, then may be said that it is hardly surprising the shares have subsequently delivered a near vertical push to the upside.
The current position is that while some may be concerned that the stock has travelled too far and too fast, we should still assume that there is considerable positive momentum still left in this situation. Such an assumption is backed by the way it is possible to draw a rising trend channel from October 2013, a feature which should be able to guide the stock higher still over the next 1 to 2 months.
The favoured scenario is that while the floor of the latest the shaped Bull flag at 7.25p remains in place as support on an end of day close basis we are justified in targeting the price channel top. This is currently stretching as high as 12p.
