New World Oil & Gas (NEW): 2012 Resistance Towards 14p In Focus

PUBLISHED: Jan 18 2013 @ 15:35 | Comments (0) |

New World Oil & Gas (LSE:NEW): Rising 2011 Price Channel

Looking at the daily chart of New World Oil & Gas since 2011 and it can be said that actually everything was on track for sustained upside until the breakdown in October / November, not only back below the 200 day moving average at 9p, but also the nominal 9p range floor. In fact, by the end of November we have been treated to a brief bear trap dip below the initial 2012 support at 8p. What we have seen since then is quite a frequent phenomenon, a new leg higher starting after the longs have been shaken out below previous support.

On this basis one would be keen to chase the shares now that there has been a weekly close above the 200 day moving average at 9p on high volume. The suggestion is that while the present 8.25p January intraday low remains unbroken on an end of day close basis – the most obvious stop loss – one would be justifiably looking for a return to the top of the 2012 range towards 14p on a 6-8 week timeframe.

free stock charts from uk.advfn.com

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @zakmir

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.