that is one way of looking at it which assumes a rising trending channel to have been established from the day the stock rebound from its bottom of a couple of months ago, end of sept this year. if this is to be the case, then i suggest the unrolling of such a trend would be a medium term occurance.
if this is to be the case, then the current rises would be rebuffed by the resistance of the said channel at around 82p after which a rebound heading down would unroll.
shorter term, you can assume the latest trened that the stock had established over the past few trading days to continue for a while. such a showing can happen in the life of a well bombed out stock with a huge room for further rises. such a trend would see the previously assumed trend to have been violated by piercing through its resistance, assuming that such a trend has been established.
i have to make so many assumptions here because it has not been long enough since the stock had bounced from the bottom. accordingly a clear pattern has not emerged yet. give it a couple of week and we would be in a better position to fathom what may come next.
for the time being, neither the rsi nor the macd show up any loss of momentum although the rsi is fast approaching its ceiling. volume however has been lamentable calling for caution to be exercised!!
so, if you are interested in this stock and not in it yet, it may be worth your while to see what will happen when the stock hits 82p, assuming that it would as i do assume myself.
alternatively, consult our guru bisvis. he does not make assumptions, he just knows what will happen, such are the faculties of this super human being!!
