Shares of Oriole Resources PLC (LON: ORR) surged 7.36% today, extending its recent rally off the support level identified in my last article on the mining company.
The chart below has the price pattern identified in the previous article. I singled out the 0.63p level as a significant support level that could hold even though the triangle pattern looked highly bearish.
The company’s shares bounced off the level as predicted, traded sideways for a few days before the current rally phase began. The shares had pulled back over the last two days before heading higher today.
We previously mentioned that the company’s fundamentals are pretty solid given recent development, such as extending its agreement with IAMGOLD, its earn-in partner on the Senala gold project in Senegal.
Oriole Resources has since issued an update on its Senala project. IAMGOLD started its fourth-year exploration programme, whose first phase is expected to be completed in Q2, with the results being ready in Q3 2021.
The early-stage exploration company also provided an update on its maiden diamond drilling programme at its Bibemi gold project in Cameroon. The assay results were delayed due to rampant power outages in the country.
However, the miner expects to release the assay results in H2 2021 after the resumption of normal operations at the laboratory, leading to the resumption of the standard turnaround times, 14 days from the receipt of samples.
Bullish traders appear to have wrested control of Oriole’s share price from the bears for now, with the potential profit target being above the 1.45p level.
Oriole Resources share price.
Oriole Resources shares rallied 7.36% to trade at 1.02p, rising from Monday’s closing price of 0.95p.
Oriole Resources shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket 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
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