Anglo Asian Mining (LSE:AAZ)
We commented recently about the possibility of some frothy times ahead for some AIM shares, given the usually unforgiving marketplace has apparently entered a further growth cycle. In fact, we almost believe the usually invisible Santa Rally may already be under way.
Anglo Asian Mining (AAZ) appears poised to take advantage of the positive outlook the AIM is exhibiting.
It closed 16 October at 34.75p, this being marginally above the downtrend which dates back to August 2005. At time of writing, this trendline lurks at 34.033p and, given both intraday behaviour and closing price, we’re inclined toward some optimism.
Near term, it seems possible movement above 36.5p should continue toward 38.5p which is quite significant. In the event of the share trading above 38.5p, a considerable jump toward 52p makes a lot of sense.
If being cautious, if we regard what occurred in 2013 as being important (price movements painted an artificial glass ceiling). It now seems closure above 35.5p will be a really big deal, opening the door in favour of 52p initially with secondary, if bettered, at a very possible 64p.
Should trouble be planned, the share price currently requires breaking 20p (the red line) to suggest running for cover. Given the point at which it closed Monday, this seems unlikely unless the company is planning to issue some really grotty news!
Alistair Strang has led high-profile and “top secret” software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know “how it worked” with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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