Breaking The Chart Barrier: Sound Oil (SOU)

PUBLISHED: 01 Oct 2012 @ 18:20 | Comments (0) |

Sound Oil (LSE:SOU) 3 In 1 On The Charting Buy Argument

While the stock market seems to have gone crazy on the fundamentals of Sound Oil in terms of the fundamentals, and the likelihood of gas production by the end of the year, the technicals are if anything even more rosy. This is said on the basis of an extended bear trap and then recovery of the former July 0.425p intraday low. The bullish RSI divergence between the July and September price lows, as well as a higher low put in place at the end of September to give what could prove to be a cup and handle type reversal, one of the strongest in charting. On this basis it can be suggested that the target for Sound Oil over the next 6-8 weeks should be towards the former June / July resistance and 1.2p.

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