Petroceltic (PCI): Volume Surge Backed Price Spike

PUBLISHED: Jan 08 2013 @ 11:59 | Comments (0) |

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) and most recently highlighting quadruple support for Gulfsands Petroleum (LSE:GPX) under 80p.

Petroceltic (LSE:PCI): Implied 10p Target

It is rare that I write up a stock twice in a day. Such honours are normally left for the indices. But in the case of Petroceltic it would appear appropriate given the massive spike both in the share price and the surge in trading volume today. On this basis one would suspect that after months of consolidation around the 7p level we shall finally see the shares fulfill their potential that the company’s fans will have been hoping for. The reason for the excitement is the presence of a rising trend channel on the daily chart since June, with a floor the channel currently running level with the 200 day moving average at 7p. This provides a natural support zone for the shares in the wake of today’s move to the upside, with the likelihood being that over the next few weeks we shall not see any weakness below this double support.

As far as the upside that might result at Petroceltic, the favoured destination is a seven-month resistance line projection targets highs 10p, with the likelihood being that if this can be achieved it would be before the of next month. In the meantime any weakness toward 7p can be regarded as a buying opportunity providing that there is no weekly close back below this number.

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