Carnarvon Petroleum NL (ASX:CVN), formerly Metana Petroleum NL (ASX:MTP), is an oil and gas exploration company with projects across Australia and Thailand.
The stock really started trading significantly in late March last year. Before that the price was moving below the $0.010 level, it was therefore a penny stock. In a high liquid volume, the stock took off to post a first high at $0.28 in late June 2007 and climbed to $0.38 in last October (point A on the chart) before correcting a bit.
This point A is the initial point of the current long-term support line. It was high that became a new low when the price succeeded to breakout above this resistance level. Indeed, this support has been tested and validated several times since last October. The two previous times (points B and C on the chart), the price action bounced back sharply after hitting this support line.
