Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of GCM Resources PLC (LON: GCM) surged 30.8% today despite the company not making any new announcements to trigger the sharp rally.
We can only speculate about the exact triggers behind today’s rally, the most likely cause being the accumulation of a significant position by institutional investors.
Meanwhile, the last major announcement from GCM Resources was the extension of its Memorandum of Understanding (MoU) with Power Construction Corp of China in early June.
The MoU was extended for another six months ending December 6, 2021. Still, the mining and mineral exploration company with a prime coal project in Phulbari, Bangladesh.
GCM Resources has faced significant resistance from Bangladeshi citizens in the Phulbari region, which has slowed down the progress of its coal project casting doubt on whether the project shall proceed.
In the meantime, today’s rally is a significant boost for the company and its shareholders, who have seen the share price fall 41.2% over the past twelve months.
I wouldn’t buy GCM Resources shares at current prices, given today’s massive rally. However, I would look for potential entries once the stock pulls back.
*This is not investment advice.
GCM Resources share price.
GCM Resources shares soared 30.81% to trade at 7.26p, rising from Monday’s closing price of 5.55p.
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