Home » Technical Analysis » Savannah Resources (SAV): Wide Price Channel Rebound Reveals 5p Plus Target

Savannah Resources (SAV): Wide Price Channel Rebound Reveals 5p Plus Target

One of the more difficult yet satisfying things to do with stocks or markets of all shapes and sizes is to call time on the end of an extended decline. The problem is actually not so much spotting a rebound in the making, but whether the bounce is of a sustained variety or merely a so called dead cat bounce.


savannah resources share priceThe clue as to the possibility of a lasting recovery for Savannah  Resources currently stems not so much from the initial rebound we are seeing from below 2p this week, but the way that the trajectory to the downside has been governed by a wide descending price channel in place since May last year. The support line projection runs to the 1.8p area at the moment, while the top of the channel is still up at 5.5p plus. This differential clearly qualifies as being a “wide” channel in percentage terms, if nothing else. The help here is that historically such setups can and do deliver decent price action reactions.

The expectations from this point is that following an end of day close back above the 20 day moving average at 2.16p we shall see a initial 2-4 week target at the present position of the 50 day moving average at 3.07p. A decent weekly close above this feature should lead Savannah Resources back to the 2014 resistance line at 5.5p over the following 1-2 months. The stop loss is seen as being sustained price action back below 2p – the 10 day moving average zone.

Join us on our new LinkedIn page

Follow us on LinkedIn