Shares of Horizonte Minerals Plc (LON: HZM) are up 35% so far this year, and investors wonder whether the stock will keep rising.
The short answer is, yes, the mining company’s stock price is likely to keep rising all things remaining constant, but as we all know, nothing is guaranteed in the markets.
The nickel mining company got a major boost in the form of a buy rating from investment firm Cantor Fitzgerald in early January underpinning its current rally.
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Analysts at Cantor wrote in a note to investors that the company “offers good value to investors looking for exposure to the growing nickel market”.
Horizonte operates two world-class nickel mines in the Carajás Mining district located in the North-Eastern parts of Brazil and is currently negotiating for the Araguaia project’s financing, which is regarded as a lower risk project.
Investors are waiting for the financing deal’s approval, which could fuel the stock’s next rally after the deal was postponed to H1 2021 in December 2020 due to delays caused by the coronavirus pandemic lockdowns.
A positive earnings report could also fuel the next rally given that long-term charts show the next resistance level at 12p above which the stock could rally up to 17p followed by 32p. Otherwise, we could see the stock fall to recent support at 5.5p before starting another rally.
I wouldn’t be buying at current prices simply because the price is far from recent support. I would wait for a break of the next resistance level or a dip back to the latest support before opening a new position.*
*This is not investment advice.
Horizonte Minerals share price.
Horizonte Minerals shares are up 37.4% in 2021 and show signs of further gains as the year unfolds.
Should you invest in Horizonte Minerals shares? Horizonte Minerals shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Horizonte shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies