BNL setting up nicely after basing off the 200dMA and lower edge of the bull flag consolidation range.
The recent sell off was in response to the broader market correction and looks to be way over cooked considering recent developments in the helium world with 3 of the largest suppliers going down.
The $30b Russian gas plant has gone down for the whole of 2022, Qatars problems look a little more dire as they could be offline for much longer and the BLM in the US (supply 10% of global helium) are down for the at least the next month.
Bad news for helium end users but great news for companies that benefit from a surge in helium pricing.
Looking at the BNL chart and you can see momentum is starting to swing after the RSI briefly touched on oversold.
If the sp can clear the 50 and 100dMAs around mid 5's (CR price may provide the magnet to this level) then the first real resistance is the most traded price over the last 8mths, this also happens to be in line with the top of the flag (channel) at 5.9c.
The 5.9 level may provide decent resistance but if breached should quickly see a test on recent highs of 6.9c.
A lot would need to happen for this level to be breached but if it did then the the bull flag breakout would give a target in the mid 9's (Perhaps some good news on Enteprise 16-1 may provide the catalyst?)
Plenty of cash in the bank so any pump from here won't be for a CR and you'd have to think will be a direct response to the price squeeze in the underlying market.
Lots of upside here IMO
DYOR GLTAH .
BNL Price at posting:
4.7¢ Sentiment: Buy Disclosure: Held
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