Although it can be seen from the daily chart that October served up a brief rebound for shares of Andes Energia (LON:AEN), one that much have sucked in a few bottom fishers, the end of week recovery that we have just been treated to does appear to be a much stronger event, and of course one which may in turn be all the more sustainable. The reason for suggesting this is the way the 50 day moving average now at 22.48p should be coming as support for the shares over the near term. Indeed, with the RSI at 78 and very overbought, one would use any weakness towards the 50 day line as a buying opportunity in order to improve the risk /reward of going long.
Nevertheless, it can be seen that with the 200 day moving average at 36.81p we have an obvious target to the upside over the next 4 to 6 weeks. Initial resistance should come in at the October floor of 31.5p. But this is expected to be cleared relatively easily given that the catalyst for the latest recovery comes in the form of as yet unfilled gap to the upside through 20P earlier in April. This along with the surge in volume over the last few sessions suggests that the shares will be able to hit the mid 30s area sooner rather than later.
