The charting issue as far as shares of MySale Group PLC (LON:MYSL) is that we are not blessed with a vast amount of historical data. However, there is enough to be able to draw a mildly descending consolidation channel on the daily chart from the end of June. This is now expected to be the driver for the stock’s latest attempt at recovery, backed both by the significantly higher support which has come in for November above 180p as well as an extended September RSI multi tested uptrend line. What helps over the last few sessions here is also a recovery of the 20 day moving average now at 190p, a technical feature which should ensure we have a sustainable recovery for MySale shares.
Indeed, the expectation is that while there is no end of day close back below the 20 day moving average a flip back towards the top of the post September trading range at 235p plus could be seen as soon as the next 4-6 weeks. At this stage only cautious traders would be waiting on an end of day close back above the 50 day moving average at 202p before taking the plunge on the upside. This is particularly so given the way that the RSI now at 56 has pushed above the neutral 50 level, and such an oscillator move is usually regarded as a clear leading indicator on positive price action.