(MENAFN- ProactiveInvestors - UK) The self-proclaimed 'King of Charts' Zak Mir says the Pantheon Resources Plc (LON:PANR) share price must climb over the coming days if it wants to avoid a 'death-cross'.
A death-cross – so called because of the shape it makes on a chart – is where the short-term moving average (MA) crosses below the long-term MA.
'The 200-day moving average is basically flat but in theory over the next week there's a risk of that going into a death-cross,' the analyst says.
Some investors will see this crossover as a bearish sign that the stock could be on its way down, but Mir doesn't necessarily agree, pointing out that death-crosses are notoriously unreliable.
'It tends to be a lagging indicator and doesn't tend to be that reliable, but obviously when it's there it doesn't make you feel good.
'Technically we're on alert for [the death-cross], so really the shares have got to flip up through that 105p [mark] this week.'
Mir reckons that if the stock can push through that mark, it could add another 20% or so.
'If it can break 105p then it's back up to fill that gap towards 130p. The red flag probably back below the 90p-zone, which was basically resistance on the way down.'
Mir has called the rise of Pantheon a 'one-year story' and looks back at the stock's growth over the past 12 months.
'It's up from below 20p this time last year, gapping higher above the 200-day moving average, that's now at [around] 134p,' he says.
'We broke down below that on 5 September and we're really trying to regroup after that.'
Mir's reference to September 5 is when Pantheon announced that its first horizontal well in Polk County, Texas had failed.
'Recently they had…the horizontal well failure, so the shares fell by a third after that and more, down to below 80p.
'It's been a decent revival since then, back up to over a pound.'
Mir adds that the support for the stock during this fall was a 'big plus', as it came in above the initial 2016 support at just above 70p.
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