I have to admit it took me so long to be able to spell and pronounce Petropavlovsk (LON:POG) that any opportunity to show off these skills is welcome, over and above the recovering the share price we are seeing at the moment.
The latest news regarding the Russia focused Gold minor is that the company has managed to prove the existence of significant new resources over the past year and is set for a consolidation of this success according to the CEO Pavel Mazovsky. We were reminded of this in the wake of yesterday’s summary of its exploration activities and the upgrade to the Albyn resource by 1.24m ounces.
All of this ties in with a recovery for the Gold price, something which has underpinned shares of Petropavlovsk to start June. On the daily chart it can be seen that there was a golden cross buy signal between the 50 day and 200 day moving averages in the middle of last month, with a 50 day line currently running up at 7.6p.
This level coincides with the floor of a rising trend channel in place from as long ago as July last year. The message at the moment is that provided there is no break back below the 50 day line we should look to the top of last year’s trend channel at 11p as the target over the next 2 to 3 months.