What is interesting about the recent charting position at Silence Therapeutics (LON:SLN) is the way that even before the latest gap to the upside it appeared that the shares were in recovery mode. This is said on the basis that from as long ago as October when there was a selling climax probe well below 200p, the shares have first stabilized and then broken back above the 200 day moving average now at 218p.
The overall the pattern since the autumn has been of a bumping along the bottom process in terms of an extended rising trend channel from late 2013. Indeed, the floor of the channel runs just above the 200 day line currently. The final big plus point stems from the oscillator window where there has been an uptrend line for the RSI indicator from as long ago as the beginning of May last year. This line of support now runs up to the neutral 50 level and having been multi-tested carries with it great implied positive momentum as a leading indicator.
The view currently is that the latest chart gap through £2.50 and post July resistance is significant, and should lead the shares back up to the top of the rising two-year trend channel as high as 500p over the next 2 to 3 months. The end of day close stop loss on the buy argument is currently regarded as being back below the February intraday high of £2.54.
