Amur Minerals: Golden cross aftermath targets 20p

1 mins. to read
Amur Minerals: Golden cross aftermath targets 20p

It has been quite a journey for shareholders of Amur Minerals (LON:AMC). But it would finally appear that the fundamental and technical positions are starting to be revealed in positive fashion.

Although Amur Minerals is sitting on a world class asset in Kun-Manie, it may be the logistics and the financials at its East Russia asset which have really dominated in terms of the perception of the company amongst private investors.

However, little by little, the landscape has improved over the past couple of months. The key factor may actually have been President-elect Trump and his infrastructure promises, as well as investors getting in on the so called Trumpflation play. All of these external factors have also been helped by the appointment of a Russian business expert to the company earlier this month, which has made the management even more robust.

Looking at the technical position, it is difficult to suggest this has been anything more pleasant than a roller coaster ride over the past couple of years, with white knuckle ride probably the best analogy to date. The current position on the daily chart appears more benign than it has done in quite an extended period, which is said on the basis of a rising trend channel in place since the end of October.

The floor of the channel currently runs just below the 50 day moving average at 9.46p. The view at this stage is that at least while there is no weekly close back below the 50 day line one would be anticipating a 2-3 month time frame target as high as 20p.

AMC chart

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