Dominic Picarda’s Technical Take
Ascent Resources Ascent is an amusingly unsuitable name for a firm whose share price has essentially been a downtrend ever since July 2007, when it peaked at 32p. Late last year it had plunged to as low as 1.6p, within sight of its record low of 1.25p. However, it has since staged something of a comeback, although it is still far from decisively reversing its long-term decline.
The near-term outlook would improve if Ascent could get back above its 55-week exponential moving average, a line that currently sits at 3.55p. That would open up a possible move to 4.686p and then 5.63p. Overall, the spiky nature of the recent gains leaves me suspicious here. A decisive drop back below the 21-week EMA (3.257p) would turn me into a bear, seeking a return to the 2p area.
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June 2012 | www.financial-spread-betting.com | 65