Chemring facing key technical resistance

Shares in Chemring had managed to 'break-out' from the downward-sloping price channel in which they had been constrained since early 2011, but had yet to overcome a key level of technical resistance, Digital Look technical analyst Jose Maria Rodriguez said.

The stock needed to breach resistance in the form of its early-2016 highs at 204.5p.

Then there was the 200-week moving average at 210p to contend with.

So the shares were still facing a key area of technical resistance around 205p to 210p.

Nonetheless, should they clamber above it, that would mark a clear improvement in their technical aspect.