Magnolia Petroleum (MAGP): Initial 200 Day Moving Average / Trendline Support

Share On Facebook
share on Linkedin

Magnolia Petroleum (LSE:MAGP): 2011 Uptrend Line


Given that Magnolia Petroleum is one of the most followed speculative situations on the UK stock market, I am aware that I have to choose my words carefully. The big plus points currently are the way that at 2.8p the shares have come back to test not only the 200 day moving average – major uptrend support – as well as a line of support on the daily chart from December 2011. What can be said now is that while there is no weekly close back below this double support zone (allow down to say 2.5p) one would expect the shares to retrace part or even all of the sell off seen since the 5p plus heights of October / November. All of this is pretty straightforward.

However, those who are cautious on Magnolia may wish to wait on the shares closing back below the top of an unfilled gap to the downside from earlier this month at 3.30p. This may seem to be a long way up, but given that such gaps can signal the start of an extended bear phase, holding back until the gap is filled could ensure one is not simply there to catch a falling knife, albeit a very popular one.

You can read more analysis on Magnolia Petroleum in Zak’s Amazon eBook bestseller, Lessons From The Financial Markets For 2013 by clicking here

free stock charts from

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211208 22:41:21