Chart of the Day: Talon Energy’s price momentum targets 1.2c, then the sky’s the limit
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Talon Energy (ASX:TPD) has enjoyed an excellent 2021 to date, and we anticipate that the measured nature of the uptrend sets the table for it to continue gaining over time.
Given that this name trades in tenths of a cent to date, the chart takes on a different character.
All the same, once the company achieved a close at 0.4c in January of this year, it hasn’t traded below that level since.
A similar thing can be said once it achieved 0.6c in March, and momentum at that time pushed the company to levels beyond 1.2c by the middle of April.
In this instance the simple moving averages are all currently trending higher, and there are no gaps on the chart with the exception of that unfilled from January of 2021 (showing that sometimes gaps don’t get filled).
The calendar year uptrend as shown using the black line in the chart currently checks in at 0.8c.
In addition to its gas prospects, TPD has also recently acquired a technology for sequestering greenhouse gases, and enhancing the recovery of hydrocarbons from coal seams, adding another string to their bow at a relatively undemanding market cap.
We will add to our current position on weakness back toward the medium-term uptrend.
In the event of significant drilling success, we would like to think that the profile of returns might be similar to that recently achieved by Norwest Energy (ASX: NWE).
1.2c is the first target, with blue sky beyond for the current set of prospects.
Steve Collette of Collette Capital Pty Ltd (ABN 56645766507) is a Corporate Authorised Representative (No. 1284431) of Sanlam Private Wealth (AFS License No. 337927), which only provides general advice.
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