Keras Resources #KRS - Ranges here then moon 2015-6 style?Let's run through some indicators to flesh out a potential fractal whereby the share price enters a trading range around the current level before going on a moon mission (most likely triggered by Togo news and ongoing newsflow from Utah):
1. RSI - Sub-30 in March and settling at 40. Prior to this, the RSI has always bounced off 30. However, the last time it went sub-30 was at the start of 2015 and spent the rest of the year between 40-50 before going on a moon mission in 1H 2016. Therefore, the current level may well be the floor if this continues to range.
2. Volume Profile - For 2015, the POC was 0.6p and the share price hung around here for the first half. This means buyers and sellers were in agreement before it fell below in H2. If we look at the profile for YTD 2020, POC and share price are in lockstep. This time, however, I'd expect the share price to move up with 0.12p acting as the floor for this trading range (this is the recent placing price and I'd expect placees to bail out between 0.12p-0.13p as they'll use the warrants to benefit from any future upside.
3. Symmetrical Triangle - As you might see on my recent ideas, symmetrical triangles are everywhere I look. Given the uptrend since March, I'd say this looks like bullish continuation (e.g. taking a breather before moving up again). I'd say we have 3 weeks for the share price to decide which way it breaks the triangle. Whilst I think it breaks up, it probably won't be anything dramatic and will just mark the top of a trading range and move sideways until major newsflow arrives (i.e. Togo).
Thoughts:
Based on (i) how 2015 panned out as a ranging period (e.g. sideways movement), share price currently at POC (buyers and sellers are in agreement so ultimately the price needs to move above or below) and the symmetrical triangle, I believe there will be a modest upside breakout in the next few weeks but this will just be a new trading range before a moon mission if positive news comes out of Togo allowing production to go ahead etc etc.
