Home » Technical Analysis » Versarien (VRS): Return To 25p Plus Initially

Versarien (VRS): Return To 25p Plus Initially

Although traders and investors are of course delighted to find themselves buying at the bottom of a bear run, the cliché of no one ringing a bell at such times does mean that “catching a falling knife” is the risk. In the case of Versarien it may very well be the case that the latter scenario cannot be ruled out, it does appear that there are at least a couple of positive factors in place here which suggest at least an intermediate turnaround is on its way since the April peak was made through 35p. Indeed, we are looking at a probable rebound off the floor of a falling trend channel which can be drawn on the daily chart since this time last year.


The best aspect of the price action over the past month is the way that there have been several intraday rebounds off the March 2014 line, something which suggests the chances of a new leg to the downside are significantly diminished. Indeed, it should be the case that as little as a clearance of the 20 day moving average at 17.86p on an end of day close basis will deliver an intermediate rally back towards the top of last year’s price channel / 200 day moving average at 25p plus.  The timeframe on a such a move is seen as being the next 4-6 weeks.

Join us on our new LinkedIn page

Follow us on LinkedIn