Shares in ReNeuron Group Plc (LON:RENE) have drifted lower throughout 2016, to the point where they are now down 20% compared to where they were at the start of January.
The ‘King of Charts’ Zak Mir has cast his eye on the stock and seems to think that the company is on a steady footing, despite what the declining shares may immediately suggest.
“The fundamentals seem to be quite solid, or at least full of hope, but the share price has been drifting,” he told Proactive.
Rather than continuing on this trend, the technical analyst claims the share price is showing signs of life and is expecting them to go on something of a run over the coming weeks.
“[There’s] an early bird opportunity there,” he said.
“[The chart shows] some bullish divergence there so that does suggest that [shares could] rally over the next few weeks.”
Mir added that the stock seems to have found some support at the 2p to 2.5p mark, but he wants to see the share price break above the 50 and 200-day moving averages to properly kick start the reversal.
“I probably want to see that 50 day moving average or even that 200 day moving average broken between 2.5p to 3p to break that double top, bearish trend that we’ve had since the middle of last year.”