Shares of Empire Metals Ltd (LON: EEE) rallied 14.3% today reversing a 2-week downtrend as bulls defended a key support level, are there more gains in store for investors?
The miner’s stock price has now formed a 1.4p trading range having fallen from a high of 4.7p on 21st January to a low of 3.3p earlier this week before today’s rally that could signal the start of a short-term uptrend.
Empire Metals last major announcement was the approval of its acquisition of the Eclipse gold project located in Australia by the Australian Foreign Investment Review Board (FIRB) on December 30, 2020.
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The company later announced that it had begun the second phase of drilling at the Eclipse project on January 7, 2021, and has not made any announcements since then.
The miner’s share price chart has now formed a sideways trading range and has just bounced off the bottom of the range, which implies that it is headed to the top of the range signalling about a 1p gain for traders.
The longer-term charts reveal that Empire Metals shares once traded at over 160p a share in 2006 before embarking on a massive downtrend over the following years. Therefore, the shares have a huge upside potential if they can break above the recent highs of 4.7p and 5.7p.
Traders interested in opening new positions in Empire Metals may be a bit late to capture the short-term move given that the stock is almost in the middle of its current range. However, investors with a longer timeframe may find that it is not too late to open new positions.*
*This is not investment advice.
Empire Metals share price.
Empire Metals shares surged 14.28% to trade at 4.0p having risen from Thursday’s closing price of 3.5p.