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Versarien 2013 Uptrend Line Rebound Expected

VRS Versarien Technical Analysis 250315


At first glance it would appear that there is not too much to shout about regarding the bull scenario at Versarien (LON:VRS). This is because the shares look as though they are continuing to wind down from the main 2014 Head & Shoulders reversal which had its top toward 35p. However, it should be noted that this formation was 10p from the neckline at 25p to the highs of last year. The implication was that on a break of 25p we had a measured move target at 15p. This zone is being approached currently and therefore it may be argued that the bulk of the move to the downside has already been completed. Another point to keep in mind is the way that there has been a return to an uptrend line from October 2013, with the impression being given that so far this feature is holding. The expectation therefore as far as Versarien is concerned is that we should be treated to at least an intermediate rebound off the 15p notional support zone, and that while this level is held on a weekly close basis this could represent a technical bargain hunting opportunity. The potential upside could be as great as the old 25p support zone from pre October, an area which ties in with the present area of the 200 day moving average now at 24.97p. The timeframe on such a move could be as soon as the next 1-2 months.

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