Shares of Alien Metals Ltd (LON: UFO) have been trading sideways for almost six months since December 2020 despite making several positive announcements over that time. Can they break out and rally higher?
The short answer is yes; the shares can break out of the current consolidative trading range and head higher since they have previously traded at 3.15p and are now stuck trading below 1.288p.
Alien Metals’ fundamentals are pretty solid, given that it recently released positive initial drill results from the Hamersley project, where it began drilling in late January.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
The maiden drill results were for the Hancock Iron Ore, part of the more comprehensive Hamersley Iron Ore Project in Western Australia.
The company also started drilling at its Donovan 2 project in March this year. The project is located in Mexico and is managed by Capstone Mining in line with the earn-in agreement signed in 2020.
Alien Metals is in a great position to benefit from rising silver, and precious metals prices as its various mines reach production stages in future.
From a technical perspective, Alien Metals shares are trading in the upper segment of the trading range, favouring a bullish breakout instead of a bearish one.
However, the shares lack the momentum to break above the level as they have been trading under the resistance level since late April. A positive fundamental release could provide the right trigger allowing the company’s shares to break out of the trading range.
I would not open any new positions in Alien Metals at current prices. However, I would open a position on a break above and retest the resistance level.*
*This is not investment advice.
Alien Metals share price.
Alien Metals shares have been trading sideways since December. Can the shares break out of the trading range?
