Enegi Oil - Re: ENEG Stream Log - Enegi Oil PLC (LON:ENEG) Technical...

Enegi Oil PLC (LON:ENEG) Technical Analysis Chart: While there are myriad positive charting formations, there are relatively few which allow the trader or investor to stand a decent chance of buying near to the floor of a trading range. Indeed, it is usually the case that so called momentum trades dominated the technical analysis process. However, times when it is possible to draw a falling wedge formation on a chart do offer the opportunity to go long of a situation in genuine bargain hunting mode. This point is underlined by the way that on the daily chart of Enegi Oil we have an extended bullish wedge which can be drawn going back to last September. The fact that the bear run the formation encapsulates has been dragged the stock back from the 10p level to below 4p, suggests we have a decent upside on tap. It also helps that there is a RSI support line in place in the oscillator window from the end of June off which the shares have delivered multiple support points. All of this goes to suggest that at least while shares of Enegi Oil hold the September 2013 support line on an end of day close basis we could be on the receiving end of a decent intermediate rally. The assumption is that especially while above recent support around the 3.8p level, an initial target of 5p at the wedge formation top could be seen as soon as the end of August. A clearance of the February resistance line / 50 day moving average at 5p should trigger a relatively prompt retest of the July resistance of 7p plus in the 4-6 weeks following a 5p clearance.