Shares of Premier African Minerals Ltd (LON: PREM) climbed 20% higher despite the company’s lack of positive releases today. The lithium mining company recently released an updated feasibility study on its Zulu mine, triggering a brief rally in its share price.
However, today’s rally is significant because it occurred at a crucial support level that has held over the past two trading days and could indicate that the bearish trend that has been in place since mid-March is finally over.
PREM shares rallied higher at the start of March to form a steep parabolic rally that saw its shares surge over 500% in slightly over a week. By now, we all know that parabolic rallies are typically followed by massive selloff, which is what happened to PREM shares.
The miner’s shares have fallen heavily over the past two weeks despite several positive announcements as bearish traders remained firmly in control of the price action. Still, the tide might be finally shifting in favour of the bulls.
Premier African Minerals shares could enter a rally phase if the support level holds over the next few days and bullish traders step in to push the firm’s share price higher.
One of the company’s latest milestones is the formal grant of an Exclusive Prospecting Order No. 1779 (EPO) over an area covering the Zulu Lithium and Tantalum claims in Zimbabwe’s Fort Rixon district.
However, nothing is guaranteed in the markets, and we could easily see the price fall below the support zone and head lower.
Premier African Minerals share price.
Premier African Minerals shares climbed 20% higher to trade at 0.21p after rising from its last closing price of 0.18p.
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