Tungsten Corp PLC Technical Analysis For 16/03/15

I have to disclaim that I hold a small long position in the low 170p range in Tungsten Corp (TUNG) as of 12/03/15 and I have no licence to give financial advice, so do not view this as advice.

• Support sits at 170p gap level (09/03/15) and has been tested twice since the gap up. I am looking to place stops below this around the 167/168 level (waiting to check for a rebound upwards if 170p is hit on the asking price).

• Short term resistance is found at 180p (tested today this week -13th) and then at 200p. The move through 190p on Wednesday illustrates a lack of any significant resistance at that level.

• The movement through the 50 level on the slow stochastic oscillator suggests building momentum towards the upside and in conjunction with this, the consolidating short term moving averages (3, 5, 8 and 13) post the drop on the 24th February suggests we're consolidating for a few days prior to another move towards the upside.

• Stochastic Oscillators are useful with stocks just out of price shocks, because the were designed to be operated within chaotic systems.

• The five day moving average (174.65p) is moving toward the twenty day moving average at (176.43), which (if crossed) will be another posiutve sign of further upwards momentum to be had. 

• In combination with this, the ten day moving average at 166.33p on further upwards momentum will provide a move through the twenty day moving average over the coming days on positive volume to the upside.

• The British Bulls system placed a buy signal on TUNG at the close of 06/03/15, and the hold of the 170p level still makes their pick a valid trade to hold in the short to medium term, at least until the reason for the trade is made invalid: https://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=TUNG.L

• Fundamentally, the share purchases from Edmund Truell suggest not only a very high level of confidence moving forwards, but moreover a desire to reduce the free float through his use of leveraged CFDs, placing more restrictions on short parties in the market to be able to reduce without causing squeezes in the market.

• Margin calls here seem highly unlikely as a result of his other financial interests elsewhere: 22.79 per cent. of the issued share capital in IFG Group plc, 48.19 per cent. of the equity of Miura (Holdings) Ltd, interests in CLOs and Permira, etc.

The Masked Stock Trader