Chariot Oil and Gas (LSE:CHAR) has been in a general uptrend since it bottomed at 4p in early 2016. Its share price suffered a significant blow when it dropped 25% at the end of February when it announced it was doing a $15m fundraise at 13p. The price has since fallen to 13.5p, with a bounce testing 14.5p resistance this morning. the Relative Strength Index (RSI) is indicating the stock is very oversold. If the upward support line just beneath the current price action is respected, this could be a good point for entry, although it’s still likely there’s an overhang from the placing stock. Failure to move convincingly from here might see a dip back to much longer-term support at 12p.
Author: Stuart Langelaan
The author does not own shares in the company mentioned in this article