Chariot Oil & Gas (CHAR): Key 28p Support Holding Along With Buy Argument

PUBLISHED: Feb 18 2013 @ 15:42 | Comments (1) |

Chariot Oil & Gas (LSE:CHAR): Extended Base Below 30p

Perhaps somewhat surprisingly, the most interest in the technical analysis of AIM stocks in recent weeks has not been in Gulf Keystone (LSE:GKP) or Xcite Energy (LSE:XEL), but actually Chariot Oil & Gas. True, the attraction here is that after the extended base since September on the daily chart at and just below the 30p level. Closer inspection of this basing process revealed that there is not only a line of support in place since the autumn running on the Chariot chart, but also that new support so far in 2013 has so far come in at and above former December resistance at 28p.

Apart from reiterating that you are unlikely to be treated to this kind of forensic technical analysis anywhere else, it can be said that while there is no sustained price action for Chariot below 28p – say a weekly close, we should be looking for a top of late 2012 price channel target as high as 38p – representing a decent initial destination on a stock which is still a potential candidate to reverse the great meltdown of last year back towards 80p later in 2013.

You can read about another just as compelling AIM Oil & Gas recovery play as Chariot by clicking here

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.