Vast Resources: Bull flag breakout could target 0.7p

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Vast Resources: Bull flag breakout could target 0.7p

I have to admit that after the Vast Resources (LON:VAST) share price was slapped down in the second half of 2015, it was rather difficult to keep the faith with the stock – until now.

It has not exactly been a pleasant ride as far as fans of Vast Resources have been concerned, and it must be said that the company did originally have plenty of private investor support. The hope now though, is that this support may be returning for the Romania focused miner.

This is said on the basis of the latest update from the company, which highlights an $8 million non-dilutive funding, which is just what the doctor (and the bulls) would have ordered at this stage. As the company’s CEO Roy Pitchford said today, the hope is that with this new cash in hand the journey towards being cash flow positive may be accelerated.

If this is the case then the recent lowly valuation of the group would appear to be inappropriate, and if nothing else one would expect some of the perma bears of the stock – of which, I am in no doubt, there are several – to throw in the towel and deliver a decent intermediate squeeze higher for the stock.

As for the upside, it can be seen on the daily chart how we have notional support for the stock at the 200 day moving average lying at 0.26p. The assumption to make is that as little as an end of day close above neckline resistance at 0.4p would be enough to deliver a top of April price channel target as high as 0.7p over the next 1-2 months.

vast chart

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