As far as the near-term charting picture at Surface Transforms plc (LON:SCE) is concerned, there is one clear charting event to focus on. This comes in the form of the as yet unfilled gap to the upside through the 50 day moving average in September. This occurred when the shares were around the 8p level and led to a sharp spike towards 20p early in October.
The best description of what has happened since then is that of positive consolidation, positive because support has come in towards the 200 day moving average currently at 11.4p on a consistent basis. This allows us to consider that the charting position of Surface Transforms is one where the technical glass is half full rather than half empty.
Indeed, in the wake of the latest rebound off the 200 day line, and daily hammer candle, we would be reasonably confident that a new leg to the upside will be on its way over the next couple of weeks. The alternative to buying tips towards the 200 day line would be to wait on an end of day close above the 50 day moving average currently 12.4p as a momentum buy trigger.
The target for Surface Transforms shares, once the 50 day line is cleared is seen as being as high as the top of the rising September price channel at 19p over the following 2 to 3 months. At this stage only sustained price action such as a weekly close back below the 10p and below February support is seen as being negative enough to delay the upside argument for any considerable period.
