Sirius Minerals: Technicals target 55p post Rinehart intervention

It has certainly been a long journey for fans of the would-be Yorkshire Potash miner Sirius Minerals. As most of us are aware, it is usually the case that for mining companies the key is less about the digging, and more about the funding. This is of course, whether or not there is actually anything under the ground.

But at least it would appear that things are starting to take shape in a reasonably positive way. Indeed, this comment could be regarded as something of an understatement given the announcement of the intervention of one of the world’s richest women. Gina Rinehart’s Hancock Prospecting is set to back the Sirius Project, now valued at up to $4bn, to the tune of $300m.

The intervention is probably the reason the shares have gone back on the front foot over the past 24 hours, with the technical breakthrough being the push back above the 50 day moving average, currently at 37.05p. The message at the moment is that provided there is no decline back below the floor of a rising trend channel from the beginning of the year at 35.5p, one would be looking to a technical target here as high as the January resistance line projection at 55p over the next 1-2 months. In the meantime, any dips towards the floor of this year’s channel can be regarded as buying opportunities.