Given how much precious metals have already bounced off the lows of 2014 – ironically helped along by Swiss National Bank incompetence and the prospect of ECB QE, one might have expected “debt free gold recovery services company” Goldplat PLC (LSE:GDP) to see its shares stage a rather greater recovery than they have this far. However, we do have the first signs of a technical improvement, something which is said in the wake of higher support for the stock in January versus the December floor. Indeed, last month served up a one day probe down to the intraday low of the year from which there has been a reasonably positive reaction.
The other level to watch at the moment is the former June 3.25p support, which is now by default the favoured end of day close stop loss level on the recovery argument. On this basis one would be looking to a “minimum” retest of the December 4.5p resistance. But of course, the usual rule in charting is that if we maintain the higher support of this month the expectation would be for a clearance of the previous resistance, and further upside progress. Much will depend on the reaction here with the 200 day moving average now just under 4p, which was the explanation for the knockback for the stock last month. Ideally a “clean” break of the 200 day line will be seen over the next couple of weeks to herald new bullish phase for Goldplat.
