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Here are the latest extracts from Zak’s new premium blog AIM Stocks Charting
It stars the likes of Petrel Resources (LSE:PET), Leni Gas And Oil (LSE:LGO) / Gulf Keystone (LSE:GKP) – day in / day out.
Leyshon Resources (LSE:LRL): Old Resistance / New Support
What I find fascinating about AIM stocks is that you are often treated to the type of extreme moves you never see in the blue chip area, something which makes charting/predicting the price action all that more of a challenge. In fact, this explains why I know of no one else who attempts to make a public call in this extremely challenging area on a regular basis. If they do they certainly keep it quiet.
As far as the charting position of Leyshon Resources is concerned, it can be seen how November brought us the classic vertical spike through the flat 200 day moving average, followed by the higher low above the 200 day line to back up the buy argument. November 22 brought the big gap to the upside, and we have been consolidating this for the past couple of sessions.
The ideal scenario here is that there will be no end of day close back below the initial November 17.25p peak before there is a new leg up to retest the high figure of this month at 28.25p. At this stage one could say that the worst-case scenario would be that the floor of the gap at 14.25p needs to be filled before further upside is seen. It can also be said that only sustained price action below 14p would cancel the prospect of an ongoing breakout for the stock. This is especially the case as we have just started a golden cross buy signal between the 50 day and 200 day moving averages – something which should kick in as far as delivering fresh momentum.
free stock charts from uk.advfn.com
Petrel Resources (LSE:PET): Old Resistance / New Support
With Petrel Resources we have another situation where former resistance has come in as new support. In this case the shares are finding at least a temporary floor and old July 2011 highs of 16p. Therefore, allowing for a little leeway in terms of the price action, can be said that while there is no end of day close back below 15p, we should see Petrel move to retest part or even all of the pullback we have seen from the November intraday high of 32p. Indeed, as things stand and with the RSI currently at 55 just above neutral, at least in terms of the oscillator the shares have unwound the recent technical from that had built up June to the massive Spike to the upside earlier in November. It can probably also be said, if that if there is no re-ignition of the mid-November rally within the next week, we may be set on extended consolidation which would not be quite the same in terms of speculative excitement as many in the market may be expecting at the moment.
free stock charts from uk.advfn.com
Amerisur Resources (LSE:AMER): 50 Day Moving Average Rebound
Although it may be said that the day-to-day price action at Amerisur Resources is not quite as exciting as some of the single figure penny stocks that we may be used to, looking back at the progression of the shares over the past year and it can be seen that this is a very dynamic situation indeed. The reason for the excitement in the near-term is the way that this week we have seen a rebound off the floor of a rising April price channel at 42p-level with the present position of the 50 day moving average. The implication of this is that while there is no sustained price action below the initial October resistance at 42p one would be looking for a new leg to the upside. The favoured destination at the moment is 60p plus at the 2012 price channel top, although given the current rate of progression this may take at least 2 to 3 months.
