What can be said that the price action here at Vipera PLC (LON:VIP) over recent months has been on the ragged side, largely due to a lack of big trading volume, the overall pattern especially since the turnaround in April does appear to be relatively encouraging.
This is because we have just been treated to a bear trap gap reversal, with the shares rebounding from below the 4p level and the former August support/2014 floor just under 4.5p. This leaves us with a decent set up in terms of the aftermath of an unfilled gap, with the implication being that while there is no end of day close back below last year’s rising trend channel/the 50 day moving average at 4.86p, one can regard the shares as being very much in rehabilitation mode.
Indeed, as little as a weekly close back above the 20o day moving average of 5.3p should be leading to a return to the main one-year resistance at 8p plus over the next 1 to 2 months. In the meantime any weakness towards the 50 day line can be regarded as a buying opportunity. At this stage only cautious traders would wait on a higher low to be put in above the 200 day moving average before regarding this situation as being a bona fide technical turnaround.
