Although in the near-term it would appear Pathfinder Minerals (LSE: PFP) has the price action pattern of a heart trace monitor, there is at least some method in the madness as far as the progress of the stock over the past couple of months.
This is said on the basis that the start of January delivered a golden cross buy signal between the 50 day and 200 day moving averages, which came in the wake of the sharp December spike which was itself preceded by a bear trap rebound.
All this should go to mean that over the next few weeks we see positive consolidation above what was former November resistance at 0.32p, and the key 200 day moving average at 0.36p. The view currently is that while there is no sustained price action back below 200 day line we should regard the current consolidation by the shares as being positive.
The hope for Pathfinder Minerals over the next few weeks would be that a decent end of day close above the 20 day moving average at 0.53p will lead to a partial or even full retest of last month resistance towards 2p. Only cautious traders would wait on the clearance of the initial January resistance at 0.87p, the neckline on the post December spike formation, before taking the plunge on the upside.
