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

PUBLISHED: 18 Feb 2013 @ 20:42 | 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

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