Red Rock Resources: Triangle target well north of 1p

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Red Rock Resources: Triangle target well north of 1p

Following on from yesterday’s look at Metal Tiger (LON:MTR), we have a company which has been helped by its association with it, Red Rock Resources (LON:RRR).

I have to admit that one of the more memorable events of my 2016 was introducing the Executive Chairman of Red Rock Resources at an investor presentation just last week. The problem I had is that I could remember the surname – Bell – but the first name totally eluded me. In the end all I could say is that β€œit is not Graham.”

Despite all of this agony it could be that there is a happy end to the anecdote given the present charting position of Red Rock Resources. Here there has been a bull flag breakout through the 0.6p zone which should set up the stock for significant further gains.

The favoured destination at this point is the top of a post-December 2015 triangle formation. This has its resistance line projection heading to 1p plus, a target which is expected to be hit as soon as the next 1-2 months. At this stage any weakness back towards the 0.6p bull flag floor is regarded as a buying opportunity, with only a move back below the former August resistance at 0.53p really delaying the upside scenario.


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