Chart of the Day: Global Resources Investment Trust

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Chart of the Day: Global Resources Investment Trust

There may be some of us who are kicking ourselves for missing out on the great 2016 rebound for mining and energy stocks. However, even though it is not exactly early days to try to get on board, there are some contenders relatively near to the low end of their respective ranges.

Global Resources Investment Trust (GRIT): 16p Trend Channel Target

What is interesting about the recent flow at GRIT is the way that the shares have spent so long in their extended downtrend, and have been so loathed to pander to the much better sentiment towards junior miners and value in the resources space. Indeed, it seems somewhat ironic that this company, with its stated aim to invest in such opportunities, has thus far appeared to be in the Cinderella position vis-a-vis investor interest in what should be one of the best exposed vehicles to the great turnaround in this space for 2016. Perhaps the first thing to note on the daily chart of GRIT over the past couple of years is the way that even as recently as 2014 the stock was trading at well over 50p, versus single figures currently. But at least we have a meaningful breakthrough as far as the June break above the 200 day moving average, now at 5.37p. This is now regarded as the weekly close stop loss on the recovery argument, especially as the 200 day line is backed by the floor of last year’s trend channel. All of this should be enough to take the shares back up to the top of the 2015 price channel with its resistance line projection heading as high as 16p. The time frame on such a target is regarded as being as soon as the next 2-3 months.

GRIT

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