Shares of Falanx PLC (LSE:FLX) are making for an interesting charting candidate the moment on the basis of the price action which has dominated the daily timeframe since May. This is because we are caught between regarding the price action since then as a range, or a consolidation ahead of a new break to the upside which would clearly hint at a new leg higher above 2014 resistance in the 60p area later in 2015.
In reality, it may be that what we are seeing is a combination both a range and a consolidation, but nevertheless it is very much a tradable opportunity on a technical basis. This is because progress for Falanx group has occurred within a rising trend channel in place since April, with the floor of the channel multi-tested in the post October period and currently lying at 31p.
When you add in backing from a double test of December RSI support line towards the oversold 30 level, and there is a decent argument for investigating the long argument in this stock from current levels. Indeed, the still rising 200 day moving average at 44p is the initial target over the next 2 to 4 weeks, with only cautious traders waiting on an end of day close above the 20 day moving average at 36p as their momentum buy trigger. Overall for the first quarter of 2015 we should expecting a revisit of the 60p zone.
