Solgold: Technical target as high as 60p

1 mins. to read
Solgold: Technical target as high as 60p

It would appear that market commentators and investors alike are almost in gloating mode given the very solid start for small caps and AIM so far this year. Companies like Solgold (LON:SOLG) have led the way.

My pet theory regarding the stock market and its 15 year plus hiatus was that as an asset class it was being eclipsed by the low hanging fruit of the real estate space. After all, why get involved in shares with all the risk and volatility, when you can have what appears to be a “one way bet” in bricks and mortar?

This was probably a bona fide attitude to have until the past year, when a combination of Brexit uncertainties and ex-Chancellor George Osborneā€™s intervention in the buy-to-let market provided a chance for a switch to equities.

For companies like SolGold there has also been the helping hand of a massive turnaround in the mining space from the beginning of last year, with its own story backed by the Trump infrastructure story in which copper is a key player, and the group’s own strong copper mineralisation reported in November from Cascabel in Equdor.

Admittedly, the shares have already risen sharply. But it should be the case that at least while there is no end of day close back below the floor of a rising August trend channel at 35p we shall be treated to a 2016 resistance line projection target as high as 60p over the next 1-2 months.

SOLG chart

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