We have a refreshingly constructive chart pattern on offer at Netcall PLC (LON:NET), one which has been brewing for much of the past year. In the near term positive triggers have included an extended October / November bear trap rebound from below the 200 day moving average now at 62p. This was followed by a golden cross buy signal between the 50 day and 200 day moving averages. But it is arguable that the present charting position is actually the best on offer over the near term given the way that we see an extended V shaped bull flag resting at the 50 day moving average level of 69p.
This would suggest that provided there is no end of day close back below the 50 day line one would expect significant gains after the current mid move consolidation has run its course. The favoured destination at this point is seen as being the top of a rising trend channel from September, a feature which has its resistance line projection drawn as high as 90p plus. This is the suggested 1-2 months technical target. At this stage only cautious traders would wait on a clearance of the January intraday high of 74p before taking the plunge on the long side – although it should be said that it would appear that most of the consolidation required ahead of a new leg higher has already been delivered.
