By rights it probably should have been the case that shares of Mariana Resources (LON:MARL) went up and stayed up in September, following an exhaustion gap reversal which took the stock from a 1.2p floor towards 3p in just a few sessions. Unfortunately, the stock was undermined amongst other things by the plunging Crude Oil price over the autumn, as well as an apparent need to retest the 1.2p September floor once again. The bears duly achieved this by November, and broke the level. This culminated in a floor for in December at 1p.
However, for January the bargain hunters were apparently in business with a higher support zone versus the previous month at 1.25p, and they have pressed home the advantage to start February. The choice now for traders is to go with the aggressive strategy which would be to use an end of day close stop loss back below the September floor at 1.2p ahead of targeting a return to the top of a falling August price channel / 200 day moving average at 2.35p, or risk down to the 1p December floor is they wish to take a longer view on recovery here at Mariana and do not wish to be stopped out prematurely. Nevertheless, the latest break above the 50 day moving average at 1.33p looks to be significant in a sustainable way.
