What is interesting about the recent charting history at Mariana Resources (LON:MARL) is that there was the hint of recovery from most of the post summer period, but until this week it would appear that the bulls were not quite able to gain sufficient traction.
In addition there was the issue of rebound attempts being sold into, the most obvious of which was September’s exhaustion gap reversal which was faded to the final 2014 intraday floor made in December. What was encouraging from that point is the way that bullish divergence was established in the RSI window via an uptrend line from that month, with bargain hunters put on alert not only by the higher support in January above 1p, but also the initial gap to the outside through the 50 day moving average now 1.29p to start February.
What inspires confidence over and above Thursday’s massive spike to the upside is the way that we have cleared the 200 day moving average now 2.24p relatively easily, and now have this as an end date closed stop loss for those seeking to run Mariana Resources shares higher. The favoured destination over the next 2 to 4 weeks while there is no end of day close below the 200 day moving average is as high as 3.5p, which is the top of a rising August price channel.
