Zak Mir covers Rose Petroleum (LON:ROSE)

Today Zak covers Rose Petroleum (LON:ROSE). If you want a chart covering for your company, please get in touch and we will try to accommodate your requests.

The views expressed are the author’s own and all readers should do their own research and seek appropriate financial and regulated stockbroker advice.

It has not exactly been a pleasant ride as far as shareholders of Rose Petroleum have been concerned over the past year and more. The main issue since the double top for the stock through 0.25p early last year was the loss of the key 200 day moving average now at 0.13p in October. Since then we have suffered an acceleration to the downside, but at least no break below the 0.07p low of the start of last year. Indeed, the optimists can gain some comfort by the way the low so far for 2017 has been significantly higher than the old floor.

This combines with positive RSI divergence between the December and February lows for the shares suggests some bottom fishing is taking place. The likelihood now is that there will be an imminent break of the bullish falling wedge formation in place on the daily chart since August, with the line to clear being the 50 day moving average at 10.6p. Above this on a weekly close should be more than enough to deliver a retest of post September resistance at 0.16p. The timeframe on such a move is regarded as being 1-2 months or less after the wedge break. Only fresh lows below 0.07p would now really scupper the recovery scenario for Rose.

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