Helium One Share Price Holds Promise Despite Bearish Pattern

The Helium One share price may be in the middle of a selloff, but institutional investors are optimistic on the stock’s outlook for 2022. City broker Liberium sees a 100% upside in the stock, which currently trades at 9.70p. The firm’s analysis note stated that the Helium One share price did not reflect the company’s work to date. Liberium has a buy recommendation with a median price target of 19p. 

Helium One has achieved several milestones since the 2020 coronavirus pandemic. It raised £16 million, a third of this coming from its initial public offer. It has also explored 400 line kilometers, transforming from a start-up to a full-scale exploration company. CEO David Minchin expects 2022 to be another transformational year.

Despite encountering some setbacks in its drilling quest in East Africa in 2021, a new study from Durham and Oxford universities has reaffirmed the presence of economically viable quantities of helium in the Rukwa basin. 

Helium One Share Price Outlook

The descending triangle on the daily chart points to a potential decline towards 6.59 in pursuance of the expected measured move. This move has to degrade the 8.29 support after clearing the triangle’s lower border at 9.48. An additional target lies at 4.88 (8 December 2020 low) if the price decline continues beyond the measured move’s completion point.

On the flip side, a bounce from current levels targets 11.85. This move would invalidate the pattern and enable the bulls to approach 15.26 if the advance continues. 17.48 becomes available if the bulls can uncap the barrier at 15.26.

Helium One: Daily Chart

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