I think it would be fair to say that it has been quite a journey for bulls of MoPowered Group (LON:MPOW) over the post autumn period. This point is underlined by the way that since September there have been no less than two unfilled gaps to the downside. But what is interesting since the start of 2015 is the way that the momentum to the downside would appear to have slowed, and the way that we are seeing the possibility of a sustained turnaround here become a real one. The main signs this is happening come from the RSI window, typically the leading indicator for recovery in such reversals. Indeed, it can be seen how an uptrend line of bullish divergence can be drawn from as long ago as October.
This is added to be the comprehensive break of a November resistance line at the oversold 30 level, something which should mean that the rally for the stock on Friday should be maintained. This is especially the case given the rebound off the floor of a falling September trend channel at 2.28p. While the 2014 support line remains in place on an end of day close stop loss basis one would be looking for an initial target at the 50 day moving average at 3.44p, with a best case scenario target at 5p over the next 1-2 months.
