Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
New World Oil & Gas (NEW): Last Line Of Support At 0.06p
Even at the best of times it is not exactly easy to get a handle on the technicals of stocks priced at fractions of pennies, given the way that even those stocks priced above the 1p mark can be problematic to say the least. In the case of New World Oil & Gas, it may be said that over and above the somewhat volatile events of the recent past on a fundamental basis, we have had everything bar the kitchen sink thrown at bulls of this prospect on a technical basis. This is said in particularly in the wake of the massive unfilled gap to the downside in the wake of the share’s return from suspension. Nevertheless, it is not entirely gloom and doom, given the way that there is notional support at the floor of a falling trend channel which has been in place on the daily chart from as long ago as October last year.
This is currently pointing at the 0.06p level, something which is rather ironic given the way that in the wake of the stock’s return to trading today we have seen a rebound / support come in at this key piece of charting furniture. On this basis it seems fair to suggest that fans of this situation should be looking to buy down to the 0.06p level as a last throw of the technical dice, with only a two day close back below this level suggesting that the New World Oil & Gas daily chart is beyond the realms of salvation on a charting basis. The best case scenario target while we hold the price channel floor is back to the top of the gap at 0.26p. This admittedly feels like it is a long way away, with the message being that for those who are cautious looking to an end of day close back above the 50 day moving average at 0.13p as a momentum buy trigger before going long. \
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