Sirius Minerals: U-shaped reversal higher continues

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Sirius Minerals: U-shaped reversal higher continues

When showing others in its sector how to deliver the process of transitioning from a resource to a fully-fledged development project, Sirius Minerals (LON:SXX) has proved to be quite a revelation.

As far as the AIM market is concerned, and arguably throughout many stock markets, the track record of mining companies has to be described as mixed at best. However, we are obliged to tip our hat to the performance of Yorkshire focused would-be Potash miner Sirius Minerals, as it says farewell to the land of the minnows and heads off to the main listing of the London Stock Exchange (due today).

This is an interesting move, to add to the winning strategy the company has offered up over the past couple of years. Of course, for many private investors with relatively little cash (and even less patience) to spare, it could be said that Sirius Minerals has been somewhat disappointing, the latest rally from below 20p notwithstanding. They tend to have a 3-6 month timeframe at best, with little ability to ride out the rough with the smooth in terms of price action or newsflow volatility.

But as Sirius Minerals shares complete their tenure on AIM, it can be seen on the daily chart that there is a bull flag resistance at the 200 day moving average at 25p. This implies we are in a mid move consolidation and that a weekly close where we are currently at or above could serve up a fresh move to the low 30s over the next 1-2 months.

sxx chart

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