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Oriole Resources Shares Drop 9.35% in Latest Pullback, Should You Buy Now?

Simon Mugo trader
Updated 22 Jul 2021

Practice Stock Trading
Oriole Resources logo

Shares of Oriole Resources PLC (LON: ORR) fell 9.35% despite the lack of news from the gold exploration and mining company. The firm’s last announcement was in early February when it was awarded five gold mining licenses in Cameroon.

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The mining company has a first-mover advantage in Cameroon where it is conducting early-stage prospecting for gold in various promising regions. It could become a significant gold producer in the country.

Oriole’s shares rallied to new all-time highs last week, and the latest decline is expected given that pullbacks usually follow steep parabolic rallies before the trend continues.

The last time we covered the company was after a parabolic rally in mid-January, followed by a dip as expected before the current rally began.

We can’t predict when the current pullback will end, but given the recent license grants’ favourable tailwinds, the current dip may be followed by a rally.

Oriole Resources shares are trading at all-time highs, and it is hard to tell how high the stock can go. The 2.0p level is the next logical resistance level since the stock fell from it.

Also, the 1.4p level could act as a support level underpinning the current decline. Still, if broken, the 1.2p level would be the next logical support level followed by the 1p level, which marks the recent rally’s beginning point.

We’ll monitor the support levels to see which one will hold, allowing bullish traders to establish new positions.

Oriole Resources share price.

Tradingview chart of Oriole Resources share price 15-02-2021

 

Oriole Resources shares fell 9.35% to trade at 1.55p after dropping from Friday’s closing price of 1.71p.

Should you invest in Oriole Resources shares? Oriole Resources 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 Oriole shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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