The overall charting situation at Tethys Petroleum Ltd LON:TPL is of interest at the moment given the way that after an extended decline within a falling trend channel from September it would appear that we finally have the possibility of a turnaround. This is said on the basis of the latest selling climax for April after which the shares fell below the 5p level, and then the high volume buying associated with this week’s turnaround and recovery of the 5p zone.
What will be key over the next few sessions for Tethys Petroleum Ltd LON:TPL is whether the shares can recover the initial April support at 5.28p on a weekly close basis. If this is the case we should be treated to at least an initial 50 day moving average target price at 7.95p, something that would take the shares back to where they were in mid March. The overall pattern if it plays out as expected, would be for a return to the top of the September price channel at 10p, even if the downtrend from the awesome continues after that. For this downtrend to finally be cancelled though, we would like to see at least a higher low put in place above the initial April support something which would suggest that the bulls are finally back in control.