Regency Mines Plc - Where we're it's likely to go in the short term.

Good afternoon fellow traders and investors,


Today we're going to have a brief technical look at Regency Mines (RGM) another one of the little known AIM companies that tend to rocket up when no one is looking in their direction.


Regency mines is strange in that it's actually looking very strong presently on a technical level and a fundamental level:


Technicals:


1. MACD


- The MACD line was certainly given a good boost in the positive direction over the last two trading days (15th and today -16th) with the MACD line looking like it's beginning to move up towards and above the EMA.


- From my personal experience with AIM, the larger tick sizes mean that if you wait for the MACD line to actually cross the EMA, you've usually missed a tick or two on the bid, which in some cases can amount to large percentage gains. Consequently, I tend to make a position when the MACD line starts to level off and then reserve capital to average down slightly if I've timed it wrong.


2. KDJ


- The KDJ line is actually pretty low for a company that's had gains of 39% over the last four trading days. This suggests to me that there's likely a lot further for this rally to go and with the K line having just crossed over the D line at 23.56, this stock is currently showing levels dangerously close to the "Oversold" side of the indicator.


- Irony aside, the smart money intra-daily has certainly had a strong eye on RGM as a result of this.


3. RSI


- With an RSI of 49.59, we're seeing pretty neutral levels here, but I would expect the RSI to bounce off of these levels and remain above 50 in the short term, as the buying expressed in the KDJ indicator causes an increase in the RSI.


- A bounce will in my opinion serve as a confirmation of more upside to follow.


Fundamentals:


I never intended to write about the fundamentals on here, as on AIM in reality I don't the ink they matter much of the time (a point for another blog post), but in the short term it can be summarised with the following lines of the 11th July RNS:


"Heads of Agreement ("HOA") with Horse Hill Developments Ltd ("HHDL") for Regency to acquire a 5% stake in HHDL."

"The well is expected to spud during July 2014 and is targeting a number of conventional stacked oil and gas targets up to a depth of 8,512 feet."

All the best, and good luck!

The Masked AIM Trader.