From a technical analyst’s perspective there are at least a couple of notable aspects on the Haydale Graphene (LON:HAYD) daily chart over the past few months. The first is the overall U shaped reversal that we have seen since December’s sharp bear trap rebound from below 40p. The added bonus in terms of building momentum at the time was the way that the floor that month was accompanied by an ultra low RSI figure below 10. Indeed, it can be said that the subsequent rebound for the shares in which they have more than doubled in less than two months was achieved in part due to the oscillator configuration being so oversold.
The position now is that despite all the gains we are judging the start of February as representing only a mid move consolidation within a bull flag resting on the 10 day moving average now running at 93.5. While we may have to allow for mild retracements towards the 20 day moving average in the 80p zone at worst, the expectation now is that provided the 80p zone is held on an end of day close basis one would be looking for further progress within a rising trend channel from June. This would suggest as high as 150p plus at the 2014 resistance line projection over the next 2-3 months at the latest.
