Is the Coro Energy share price forming a support base? (CORO)

We have covered Coro Energy (LSE:CORO) a few times previously as a speculative play. At present, it is not possible to place a value on the potential of the company with so many unknowns, namely what acquisitions the board will bring to the table. From a technical perspective, the share price has revisited the 3p area which appears to be becoming a support level.  This follows the stock poking its head above 4.3p just two months ago – this high being a shade below the last placing price of 4.38p.

Coro is in a general downtrend but if it can rebound from here it could be showing signs a decent baseline is in. A move out and above the purple downward channel would be a good start to break the trend. There is however little in the way of support below 3p so a tight stop may be advisable on entering a trade – the main channel running from June 2017 would only offer a cushion around 2.3p. The Relative Strength Index (RSI) has moved into very-oversold territory.

Author: Stuart Langelaan

Disclosure: The Author does not own shares in the company mentioned above

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