Shares of Metals Exploration Plc (LON: MTL) are down 42% from the recent high of 3.40p as the initial euphoria surrounding the company’s readmission to trading on the AIM slowly dissipates.
The mineral resource and exploration company’s return to the AIM was welcomed by investors as its shares surged 368% higher within two days before its latest decline as buyers unwind their long positions banking some of their profits.
Metals Explorations new debt repayment terms are more favourable to the company, hence, the recent rally but it remains to be seen whether the company shall honour its debt obligations going forward.
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Traders who missed the stock’s recent rally might be wondering whether now is a good time to buy and the answer to this is that it depends. The stock is currently trading at a major support/resistance level around the 2p level.
I’d be looking to buy if the level holds over the next few days, however, I’d not be quick to establish short positions if the level does not hold simply because I do not think the bears have the same momentum that the bulls exhibited during the rally.*
*This is not investment advice.
Metals Exploration share price
Metals Exploration shares today plunged 10.3% to trade at 1.91p having fallen from Thursday’s closing price of 2.13p.
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