While it may have been expected that shares of Union Jack Oil PLC LON:UJO would drag their heels after the sharp and extended rally from April to September last year, it is likely to be the case that even the most committed of bulls would have seen their ardour diminish in recent months. This is particularly given the way that since the loss of the 200 day moving average then at 0.3p in October we have witnessed this feature now at 0.25p come in as new resistance on a persistent basis. Indeed, this remains the line in the sand in terms of marking the boundary between regarding Union Jack as remaining in bear mode, or shifting to the bull side.
What helps Union Jack Oil PLC LON:UJO in the longs quest for further upside is the way that there has been support coming in for the shares towards the November price channel floor / 50 day moving average at 0.21p. In fact, the expectation now is that at least while there is no end of day close back below the 2014 price channel floor we should see construction moves, backed by rising buy side volume over the past few sessions. The favoured initial destination is the November resistance line projection currently pointing at 0.33p as a 1-2 months target. Only cautious traders would wait on a weekly close above the 200 day line as the cue to go long on the basis of a momentum trigger.