Sometimes it takes a while for shares of a company to respond to positive events, and especially in current markets, we see people heading for the exit to get some liquidity in, before the price action gets going. In the case of Tertiary Minerals it can be seen that in the recent past the shares have effectively been in a range between 0.10p and 0.30p, and just on a cursory basis, the rebound today would appear to be a rebound off the main support zone. Added detail comes in from the way that in September there was a gap to the upside, one that even after the early March dip for the stock remain unfilled – just. From a charting perspective this is a strong signal as the implication is that TYM was simply too strong to fill the gap. When you add in the bullish divergence in the RSI window ( a lower price low, but a higher RSI trace), as well as the break today above a now rising 50 day moving average at just under 0.14p, we are looking at what should potentially be a breakout from the bottom of the range.
If you add in the way that historically, when this stock moves it really moves, and the fundamental improvement over the past couple of months things look better still. For instance, the company raised £300,000 last month, and has been gushing about copper projects in Zambia and Nevada. The datasets it is looking at of First Quantum could very well be the trigger for a share price move which mirrors the rally we saw back in September. Ideally, the move higher this time is justifiably one which is sustainable.
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