What can still be seen on the daily chart of Herencia Resources PLC (LON:HER) is that the stock remains very much in the shadow of an as yet unfilled gap to the downside from as long ago as September. Such gaps can dominate the price action in a negative way for long after the time they occur. Nevertheless, the position here is that we have been witnessing a slow turnaround here from the worst levels below 0.20p made since December. The fact that this has been an extended basing over the past couple of months with higher lows for January and February is encouraging, especially as these support points are backed by an uptrend line in the RSI window from November.
The line in question currently runs at the 40 / 100 mark, with the technical bonus at the moment being the way that the oscillator trace has just bounced off the neutral 50 level. This suggests that the bulls are gradually getting back in control, especially when this positive RSI activity is added to the latest February consolidation in the price window at and above the 50 day moving average. Indeed, the set up is that provided there is no end of day close back below the 50 day line now at 0.21p, a climb towards the top of a rising October price channel which can be drawn to 0.37p could be achieved over the next 1-2 months.
