It would appear that things are finally on the move and on the mend in terms of the daily chart configuration for San Leon Energy. This is said in the wake of the double gaps to the upside seen for the post February period, with the second of the gaps filled down to 1.15p ahead of a fresh rebound for the stock. There are also a couple of extra positive factors such as the way there has been an extended RSI uptrend line in the oscillator window since December, and the support offered by the 50 day moving average now at 1.21p since the middle of last month. Such 50 day moving average recoveries can lead to significant rallies, a point which is underlined by the recent improvement seen at private investor favourite Quindell (QPP).
In the case of San Leon Energy it can be said that we are looking at an expected fresh leg to the upside as a gap fill reversal rebound, with the message being that while there is no end of day close back below the 50 day line one would be looking for a journey over the next 1-2 months towards 2.2p at the top of a rising trend channel from December. At this stage only cautious traders would wait on an end of day close back above the 20 day moving average at 1.42p before pressing the buy button.
