Sirius Minerals: Breakout targets 200 day line at 24p

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Sirius Minerals: Breakout targets 200 day line at 24p

It would appear that Sirius Minerals (LON:SXX) is finally hitting the big time, at least in terms of ambitions to list on the main market.

It will be interesting to see whether it is better to travel than to arrive in terms potash miner Sirius Minerals’ journey from AIM to the main market of the LSE which it is proposing to make by the end of next month.

Indeed, it has been quite a journey for the company and its proposed mega project in Yorkshire, with its legion of private investors having to withstand the pullback in the stock from over 40p to around 20p now. The latest breakout for the stock through recent post February resistance at 19p is clearly very encouraging, especially as it has been a strong two day move.

What is now expected for the shares over their remaining time on AIM is consolidation in the 20p zone, ahead of a fresh move to the upside. This could stretch as high as the present position of the 200 day moving average at 24.62p, helped along by the way that the shares have spent several months establishing a base below 17p on a quadruple bottom basis.

The added kicker from a charting perspective is that it is possible to draw a broadening triangle from as long ago as the end of November. This has its resistance line projection heading towards the 200 day line area, something which underpins the idea of recovery for Sirius Minerals.

sxx chart

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