Uru Metals: Measured move targets up to 4p

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Uru Metals: Measured move targets up to 4p

While it may be the case that Uru Metals (LON:URU) shares are somewhat “over followed” at the moment, this doesn’t mean we don’t have decent charting material on our hands.

Although many of us prefer to dodge the most heated of social media backed stocks and those where there has been a vertical move higher for the share price, in the case of URU Metals it may be worth taking a peak at the situation. This is said on the basis of the information we have been treated to over the course of the start of this year.

The big plus in this respect was the way that, after a placing of around £0.75 million, the share price actually started to rally strongly. This is a relatively rare occurrence given the obvious dilution for a stock, but when one does see a bounce it usually means there is something special going on. Indeed, we have already seen the shares rise by nearly five times over the past six weeks, and from the present technical configuration it looks as though there is more to come. Perhaps much more.

This is said on the basis that we are currently in a mid-move consolidation bull flag, with the floor of the flag towards 2p. Given the way the first leg of the push higher was from 0.5p to 2.5p, one would be looking to the next leg to deliver a 2p push higher from present near-term 2p support. The simple maths is that we are therefore looking at a possible 4p target over the next 1-2 months. At this stage only a weekly close back below 2p is considered enough to significantly delay the upside scenario.

Uru metals chart

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