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