It has certainly been a long journey of recovery that bulls of Mariana Resources (LON:MARL) have had to go through. But at least currently it looks as though we have a credible base building process in progress, one that indicates that finally we will see at least an intermediate recovery for the shares. The best way forward here is probably to look at the trajectory of a rising trend channel from October, one which has its based towards the 1.4p level, also the zone of former February resistance.
The expectation now is that further attempts will be made to stretch up to the key 200 day moving average at 1.97p, a feature that blocked an initial recovery attempt in February. The setup we have now is that as little as an end of day close back above the 200 day line should be enough to deliver a partial or even full retest of February highs through 2.5p. The stop loss on the buy argument at this stage is probably best served by an end of day close back below the 50 day moving average at 1.59p. Any dips to the 50 day line in the interim are regarded as buying opportunities.
