With Dekeloil Public Ltd LON:DKL shares over the recent past it seems that we can say the overall pattern has been of a bumping along the bottom situation. This underlines the way that towards 0.8p we are looking at a stock trading towards the floor of its recent trading range, a state of affairs which could be regarded as somewhat unfair given the way that the fundamentals do appear to be improving significantly on the ground. In terms of what we have seen over April to date is concerned the most fair assessment is that we have seen a “final” bounce off what was the former late 2013 support at 0.8p, temporarily taking out higher lows towards 0.9p which have been in place since then. This sets up a bear trap rebound effect over the near term, something which should provide at least intermediate momentum for Dekeloil backed by rising buy side volumes.
In the first instance we should see a push towards the 200 day moving average bow at 1.19p – something which makes for a decent 4-6 weeks time-frame target. The hope then would be that a weekly close above the 200 day line would be enough to lead the stock back to the 2014 resistance zone at 1.5p plus over the following 1-2 months. At this stage the ideal scenario for Dekeloil Public Ltd is that there would be no sustained price action back below the former initial 2015 support from January at 0.9p.
