It is common sense that often the most rewarding technical set ups are those which are longest in the making. This is very much what we could be heading for on the daily chart of Afriag PLC (LSE:AFRI) given the way that the shares have apparently been establishing a base over much of the past year.
What also helps is that since the autumn higher support for the stock was coming versus the format May floor at 0.26p. This is now clearly the line in the sand for the bull argument. But our ability to draw a rising trend channel running through post November support and along to the 50 day moving average at 0.36p all goes to give the impression that Afriag shares have begun to turn the corner.
Aggressive traders would currently be going long of the stock with their stop loss just below November support at 0.3p. Otherwise those who prefer to buy into more significant momentum than we are seeing currently would wait on a weekly close back above the 200 day moving average now falling at 0.46p. Should the 200 day line be broken over the next couple weeks one would expect to see a minimum retest of post March resistance at 0.8p over the following 1 to 2 months.