What is a standout in terms of the price action of Pantheon Resources (LON:PANR) over much of the past couple of years is the way that the shares have generally been confined to a 14p to 24p range over this period. Without wishing to oversimplifying the technicals here it should be worth noting that sometimes the simplest perspective on a stock or market is the one to go for. However, we can add a little more to the equation, at least in terms of the timing issues here. For instance, the December – January double bottom towards 14p was a bear trap rebound, one which was accompanied by bullish divergence in the RSI window.
There has also been a recovery of the key 50 day moving average now at 15.97p since the beginning of February, with this feature guiding the shares higher, backed by the December uptrend line in the RSI window. We have also had a fresh oscillator signal here in the form of a double bounce off the 4 month RSI line. Such double reactions do normally provide decent intermediate price action momentum, over and above the way that former April 2014 support at 15p has also been recovered in recent weeks. The chances now are that Pantheon will revive further within a broadening 2014 triangle, with the notional stop loss just below the initial 2014 low. The target is back to 2014 resistance in the 24p zone, especially while the 50 day line acts as support.
