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Versarien PLC (LON:VRS) Key 15p Support Tested

Judging when or whether an extended bear phase for a stock has run its course is not always an easy thing to do. Indeed, some may argue that it can be one of the more problematic challenges for investors, given the way that most are by definition biased to the long side anyway. In the case of Versarien PLC LON:VRS it can be seen how the stock has tumbled from 35p plus this time last year, towards the 15p level. Indeed, it is evident that for April to date we have been treated to a narrow bear trap rebound from below the former 15.6p March floor. It helps that the latest marginally lower low was accompanied by significantly higher RSI readings, with this bullish divergence adding to the impression that the stock could be set for at least an intermediate rebound.

VRS Versarien Technical Analysis 160415


On this basis one would suggest that provided there is no weekly close back below the 15.5p March low the benefit of the doubt should be given to the buy argument at Versarien PLC LON:VRS. The favoured initial target while this support remains in place is as high as the 200 day moving average at 24p over the next month, a zone which ties in with the former December resistance zone. Those who would like to see further evidence of bullishness may however wish to wait on an end of day close back above the 50 day moving average at 17.24p before pressing the buy button.