Sound Energy PLC (LON:SOU) has plenty left in the tank, even after a three-month move that has seen the stock gush 400% higher. That, at least, is chart guru Zak Mir’s take on the gas development group that has enjoyed huge success in Morocco and has a big well coming up in Italy. Mir, who has been following Sound closely now for months, said it has adhered to all the basic rules of technical analysis in its journey so far. “You had the break-out through 20 [pence], which was the first signal. You had a bull flag at in the 30s…I remember talking to somebody about that,” he told host Nick Batsford on the Proactive Investors bulletin board show earlier.
WATCH: Zak's analysis right now
“The shares haven’t traded below the 20-day moving average since the beginning of July.” So where does Mir expect the next stop will be? Around the 120p-mark he reckons, which leaves some 40% upside from current levels. He also provides some helpful hints to Sound investors when it comes to setting their stop-loss on the stock. Earlier on Twitter, the company announced ground works had begun ahead of work on the Badile well in Italy. With a net present value of over £400mln, success could move the dial again for this darling of private investors.