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Daily Internet PLC

Daily Internet plc (LON:DAIP): Gap Through 200 Day Moving Average Targets 3p

One of the more reliable charting signals that we can be treated to in the scheme of price action events is an unfilled gap to the upside through the 200 day moving average. This tends to be reliable on the basis that the 200 day line is traditionally seen as being the boundary between the bulls and the bears, with a thrust above this feature which has been so sharp that there are no traders, especially powerful. This is what we have just been witnessing at Daily Internet plc LON:DAIP, with the message at the moment being that even though this is clearly not a liquid stock, the technical signal here is robust and should trigger follow on gains.

 

DAIP Daily Internet PLC Technical Analysis 010415

 

The best trading / investing strategy here for Daily Internet shares would appear to be to follow the latest momentum, especially as it has also included a clearance of the former 1.75p February peak. This would suggest that at least while there is no end or day close back below the 200 day line at 1.63p we should give the benefit of the doubt to the long argument, with any interim dips towards this zone regarded as a buying opportunity. The target for Daily Internet while the key moving average is held is seen as being the top of a November rising trend channel at 3p plus over the next 1-2 months.

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