Northcote Energy Rising Volume Signals Forthcoming Turnaround

NCT Northcote Energy Technical Analysis 250215

 

There have been at least a couple major issues as far as the price action of Northcote Energy (LON:NCT) has been concerned in the recent past. The first has been that even the idea of bottom fishing the shares over recent months has been fraught with danger given the obvious momentum to the downside there has been on a daily chart since September. At that time they were trading over 1p higher than they are currently.

The second is the way that all the way down we have seen the 20 day moving average currently at 0.1137p block the attempts at rallying. On this basis, the suggestion is that at least while there is no end of day close above the 20 day line it may be best to wait on the idea of bargain hunting even though with rising volumes and bullish divergence in the RSI window there is clearly interest in bottom fishing this stock.

Indeed, the best way forward here is probably to wait on a combination of a 20 day moving average clearance with a break back above the top of an early February gap to the downside, so that we have a double charting reversal signal. If this was triggered the initial upside here would be seen as the early January resistance zone at 0.25p over the following 6 to 8 weeks.

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn
    DirectorsTalk

    More articles like this