Mirach Energy (21.5 cents) - Facing temporary resistance

In the short term, prices are likely to meet with resistance at 21 cents, a level that coincides with the flattish 200-day moving average. In addition, the 21-day moving ave rage has hit the 80 mark, which represents an overbought high.

A temporary pull-back is likely. If the up-momentum is to be maintained, any correction should be mild, with prices moving sideways. In this event, support needs to be kept tight, at 20 cents. A break above 21 cents indicates a target of 27 cents, although prices have traded at much higher levels.

Mirach Energy (15 cents) - Could test top of sideways range

Prices have been entrenched within a very narrow range for more than six months. This is likely to be part of a base formation. Prices are now testing the top of the base, which coincides with the confluence of the 50- and 100-day moving averages at 15.2 cents. Volume has picked up on white-candle days. But this is not sufficient to trigger a breakout.

Both 21-day RSI and five-day stochastics are turning up, lending some short-term strength to the counter. Quarterly momentum is challenging resistance at the several-times-tested equilibrium line. A breakout by momentum would trigger a price break. In this event, resistance appears at 22 cents initially. Support has been established at 15 cents.