Although we are clearly not helped by the relative lack of liquidity as far as the price action of Arria NLG (LSE:NLG) over the recent past, there is still enough on the technical / charting side for us to make a reasonably confident assessment of the prospects here, as well as the likely upside. What helps in particular is the way that for January to date there has so far been double unfilled gaps to the upside, over and above the second higher support for this stock this month above 20p. The key over the next few sessions may be the way that for the start of this week we have been treated to an end of day close back above the 50 day moving average at 36p.
The 50 day line is traditionally the line which caps stocks and markets in downtrends and therefore it should be significant that the shares have delivered a break above this feature now, accompanied by a push back through the former September 33p floor. All of this action should go to mean that Arria shares can be regarded as a bear trap rebound candidate, especially while there is no end of day close back below the aforementioned low. While this is the case the upside for Arria is seen as being a minimum retest of the 47p 200 day moving average line hit to start this week. However, a weekly close above the 200 day line should be enough to trigger a journey to the top of the April triangle from last year at 80p on a 2-3 months timeframe.
