Given how fickle the commodities space underlying Goldplat PLC (LON:GDP) is, it can be said that trying to tie in the recent rebound for precious metals with the share price here may not be the best read across in town. Nevertheless, it can be seen from the daily chart of this stock in recent months that we are looking at a likely extended base. This has been around for long enough to suggest that for Q1 2015 we could at least be treated to an intermediate revival. We are helped in terms of the timing of such a move by being in the aftermath of a December bear trap rebound from 3p, below November support and below the former June 3.25p floor. The view now is that momentum should start to build in an increasingly positive way for this situation, especially as the appearance currently is of a bull flag consolidation between the 50 day and 200 day moving averages. Therefore the best way forward currently is to go with the bottom fishing argument at Goldplat while there is no end of day close back below the old June support. This should lead the shares back towards the main post May resistance at 5p plus over the next 2-3 months, all within a rising trend channel from February. Only those who are cautious on the stock would wait on a weekly close above the 200 day moving average now at 3.93p as a momentum buy trigger. The stop loss on the buy argument is sustained price action below the 3.25p support.
