Venn Life Sciences (LON:VENN) shares may clearly not be the most liquid in town – yet, but it can be seen that there have been decent technical and charting signals here in the recent past. All of this goes to suggest that this is a situation which merits being followed quite closely over the next 1-2 months. The start of the recovery here came via a quite unusual, but quite special one day island bottom reversal in December – with the gap down and then gap up to mark out the floor for the shares. Since then we have seen a recovery of the former September support at 16.2p in December, and then the 200 day moving average now at 20.4p for the start of January.
While the 200 day line has subsequently been tested and temporarily breached a couple of times since the start of the year, the overall pattern here for the daily chart appears very robust. This is especially the case in the wake of the post March island reversal based at the 200 day line, something which in the wake of the latest gap to the upside suggests that there is plenty of momentum on tap. Indeed, it can be said that while there is no end of day close back below the 200 day moving average the upside for Venn Life Sciences is seen as being towards the late 2013 price channel top at 35p.
