Fastnet Oil & Gas PLC (LON:FAST) has been of note in the recent past on the basis of the rather “challenging” price action which has followed the topping out process which been interspersed by quite convincing looking intermediate rallies. The biggest and best of these was the rally between August and September which stretched from 4.75p to 8.70p peak to trough, easily enough to satisfy all by the most greedy of short term traders. However, the revival petered out almost as quickly as it appeared, clearly not helped by the general malaise brought on by the halving of the Crude Oil over the course of the autumn and beyond.
This leaves us now with a stock price which has been toying with the former December support at 2.15p and the psychologically important number of 2p. Indeed, these two numbers should now be in play in the wake of the narrow bear trap rebound from just below 2p on Friday at 1.97p, with the weekly close back above the 2.15p December floor. This can be regarded as a quite positive development, one which provides traders with a couple of choices. The first would be to buy the stock on dips towards the December low and have an end of day close back below 1.97p, or simply to wait on a clearance of the October resistance line at 2.65p as a momentum buy signal. Above this feature would target the 200 day moving average at 4.69p over the following 1-2 months.
