Is Helium One Share Price on Course to Drop Below 5p?

Late last month saw Helium One share price start a rally from September 22 to 28, which resulted in the company’s value surging by 40 per cent. The rally came amidst positive news for the company, which included progress at its Rukwa project in Tanzania. 

However, Helium One share price has been on an aggressive bearish trend since then. Today, with prices already down by 7 per cent in October and the bearish trend on a 7-day streak, it is likely that we might be in a long-term downward trend. 

Part of the reason we have seen the company’s share price drop is the current economic crisis in the UK. The rising inflation rate, the continued adjustment of interest rates by the Bank of England, and the falling British Pound against the dollar have all put most investors on edge with fears of a looming recession. The result has been a broad market selloff, which has extended to companies such as Helium One.

Helium One Share Price Analysis

On the technical analysis side, Helium One performance in the market for the past two weeks points to an aggressive bearish trend. In the past seven trading sessions, Helium One share price has closed with a market loss, which has resulted in the company’s value dropping by over 20 per cent. The Williams Alligator indicator also shows the company’s aggressive bearish trend. 

Therefore, my Helium One share price expectations based only on technical analysis expect it to drop and hit the 5.32p demand zone. There is also a high likelihood that we might see prices breaking out of the demand zone and trending downwards, which is likely to see Helium One trading below the 5p price level for the first time since August last year. However, a trade above the 7.5p price level will invalidate my bearish analysis.

Helium One Daily Chart

Helium One share price