What can be seen on the daily chart of Forbidden Technologies (LON:FBT) currently is the way that we appear to have the beginnings of an extended recovery here in the wake of the much higher support for the shares in February above former January support at 8p, and the 20 day moving average at 8.95p.
This turnaround is also backed by the way that last month delivered ultra low RSI levels below the 10/100 level which have subsequently been recovered well. Indeed, the weekly close for the oscillator was above 50, to stand at 52.
The view here now is that we should start to see an acceleration to the outside, especially while there is no end of day close below the 20 day moving average/December support line. Indeed, it could be the case that it is valid to target as high as a 2014 resistance line projection target 22p over the next 2 to 3 months, given the encouraging base on the daily chart over the past month.
At this stage only cautious traders would wait on the end of day close for the shares back above the 50 day moving average at 10.52p before taking the plunge on the upside. The initial target here would then be towards the floor of a December gap to the downside/200 and moving average of 7.39p over the next 4 to 6 weeks.
