Asiamet Resources: Rising moving averages point to 8p

1 mins. to read
Asiamet Resources: Rising moving averages point to 8p

It might be said by fans of small caps that in terms of the investor relations aspect of Asiamet Resources (LON:ARS), we have seen a perfect performance. That is, perhaps, apart from the name change.

Perhaps the only blemish on the recent history of Asiamet Resources is when the copper-gold explorer changed its name from Kalimantan Gold. I have never really understood moves like this from small caps, as it strikes me that it is largely irrelevant what they call themselves, as long as the share price remains on an upward trajectory.

The other bigger negative from a charting perspective is that not all data providers consolidate the share price history before and after the name chart. This is not very helpful if you are a chartist, as all of a sudden you have very little to go on.

On a more serious note it can be said that Asiamet has been exemplary in terms of providing the drip-drip of positive newsflow. In the past couple of weeks this has culminated in the resource definition drilling programme likely to be completed this week.

The share price has responded in kind, helped along by the way by the fact that all the near-term moving averages are rising. The implication now is that while there is no end-of-week close back below the 50 day moving average, now at 4.24p, we should be treated to a best case scenario target as high as 8p over the next 2-3 months.

ars chart

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