The situation in charting terms has been quite encouraging at Forum Energy PLC LON:FEP for quite some time, in the sense that it has appeared that the shares are bumping along the bottom. This has been feeling since early March when there was a temporary bear trap rebound from below the former December 20 p support. The situation now is that we have seen a near vertical move through the 50 day moving average currently at 22p. This push to the upside has even more technical significance given the way that the stock has pushed through the 50 day line while it is still falling. It is usually the case with stocks and markets that when they break above such moving averages features when they are still falling, that we are treated to the best and most sustained recoveries.
Indeed the view at the moment for Forum Energy PLC LON:FEP is that while there is no break back below the former December 20p support level we should see this year’s head to the top of the rising September price channel which can be drawn with its resistance line heading a size 40p. The timeframe on such a move is seen as being within the next 1 to 2 months. In the meantime any initial dips back towards the 50 day moving average are currently regarded as being buying opportunities.