What can be seen on the daily chart of North River Resources (LON:NRRP) over the near-term is the way that since the beginning of December the stock has been building a base either side of the key 0.5p level. Indeed, it is possible to draw an uptrend line from as long ago as July, when the low of last year was made just below 0.4p.
What Bulls will be hoping for now is that the bumping along the bottom action of recent months is finally over and that shares of North River will finally move to retest at least the autumn resistance zone above 0.8p. This should very much be the case given the higher support points above 0.4p to start 2015 and the recovery of the 50 day moving average and 0.51p. That said, it would be understandable if some cautious Bulls might wish to wait on a clearance of the initial January/March resistance and 0.6p before assuming that the sustained move to the upside is finally on its way.
This is especially the case given the way that just above early 2015 resistance is the 200 day moving average at 0.63p. The ideal scenario over the next 2 to 4 weeks is that there will now be no further probes below the 50 day line ahead of North River shares heading back to last summer’s peaks over the next 6-8 weeks.
