Market Flash – Tuesday 20 February 2018 (AAOG) (BTC)

By Richard Mason


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– – – Market Flash – updates through the trading day – – –

Bitcoin reaches a critical level in its recovery. Do you feel lucky, Crypto-punk? (BTC)

A strong rebound from $6,000 has seen Bitcoin shoot back towards its 100 DMA. It’s currently just above its 50 DMA but has hit significant resistance; a diagonal trendline formed from previous highs. If the Cryptocurrency can break through this level I suspect it will leave it’s 200 DMA for dust and head towards the $14,000 area. A failure to conquer this challenge could, however, see Bitcoin pull back in search of strong support once more. It’s worth noting the RSI is just below the bullish 60-70 zone too. This region can often act as a springboard for a move, but on this occasion, its first try was rejected.

Popcorn at the ready for the next attempt.

Is Anglo African Oil and Gas worth a punt at 50% discount to its IPO price? (AAOG)

The company has been plagued by missed targets and delays since its IPO last Summer. Shareholders hope the recent board re-shuffle will bear fruit and updates on securing both an extended license and a rig are much anticipated. There may be an entry opportunity with sentiment so low and the share price currently sitting at a significant 50% discount to the 20p IPO price. Although this is very much a binary play dependent on positive news, its chart has proven to be very pattern-based as the share price has drifted. A ‘Falling Wedge’ pattern has formed which is potentially a bullish sign of a reversal. Yesterdays close above its 20 DMA is also a positive sign.  For the past few months, the price action has respected the 50 DMA as resistance. A move above that level – which would coincide with a break out of the Falling Wedge pattern – would be extremely bullish with next resistance levels of 13.5p and 16p.  There’s always the risk that continued delays will result in further downside, and concerns over the need for a further fundraise have weighed heavy on its recovery. But for the less risk –averse, Anglo African may offer an interesting punt opportunity.

Author: Stuart Langelaan

Disclosure: The author of this piece owns shares in the company written about above


In this article:


Author: Richard Mason

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

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