Shares of Orosur Mining Inc (LON: OMI) are down 50% from their February highs amid a lack of significant news from the gold mining and exploration company with operations in South America.
The company’s shares have fallen drastically and are trading at a critical support level that could trigger a rally if it holds. However, the miner’s share price does not appear ready to reverse course and head higher at this time.
The chart below indicates that the bears are still in control of Orosur Mining’s share price, given that several bearish candles quickly follow each bullish candle. However, it is still too early to predict where exactly the stock price is headed.
The last major announcement from Orosur Mining was about its Anza project in Colombia, where initial assay results following drilling works at the site were promising. Still, full results were expected to delay due to staff shortages driven by the coronavirus pandemic.
Traders would be best served to wait to see which direction the company’s shares will take as a decisive break below the resistance level could indicate the downtrend’s extension. In contrast, a bounce off the level would indicate a new rally.
Orosur Mining shares might also trade sideways for a while as investors take a break before deciding which direction they think the shares should go.
Either way, adopting a wait and see approach is the best course of action here until we get a clear picture of where the company’s share price might be heading.
Orosur Mining share price.
Orosur Mining shares have fallen 53.4% from their February high of 41p to their current price of 19.10p. Will they keep falling?
Should you invest in Orosur Mining shares?
Orosur Mining 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 Orosur Mining shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies