Selan Exploration broke out above trendline resistance in Jan 2014. The stock has doubled in value since then. The big question: What next for the stock?
Let's start from where it all started: The Breakout
As you can see in the chart above - Selan Exploration stock broke out above the trendline resistance around 325-340.
Post breakout, the stock rallied and made a new All time HIGH above 418.
The stock is now in strong uptrend with 50 dma as support
Selan Exploration right now is at 50 dma, and it will be interesting to see whether bullish traders would support the stock here and take it higher. BUT if the stock breaks down below 50 dma - then it may mean that stock is weakening a bit and may go in for correction to 100 dma i.e. 518. Let us see what happens
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers