What has been and remains the standout period of last year for shares of LGO Energy PLC (LSE:LGO) in terms of the extended bull run we have seen here is the April/May rally which left an unfilled gap to the upside well below the 2p level.
Since then we have seen a buying climax / spike in September up to 6.95p, with the predictable cooling off/consolidation since then. What has also been helpful is that the pullback zone towards the 3p level has also being towards the still rising 200 day moving average at 3.28p.
Indeed over the last month we have seen a double bear trap rebound from below this feature now at 3.28p. The implication is that at least while there is no end of day close back below the former October 3 p floor, shares of LGO Energy are expected to revisit the December peak at 5p over the next 2 to 4 weeks.
At this stage only cautious traders would wait on a break for the oscillator currently at 45, to head for RSI 50+, and/or a weekly close above the 50 day moving average at 3.98p as momentum buy triggers which would suggest that the ultra positive price action of earlier in the year had returned on a sustained basis.
Nevertheless, given that we are in the aftermath of last month’s brief bear trap below 3p and have delivered a higher low for January to date, it does seem that this market is very much back in play for the Bulls.
