By Zak Mir | Thursday 29 October 2015
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Orosur Mining (OMI): Target Towards 10p
There was a wobble for gold yesterday in the wake of the more hawkish stance revealed by the Federal Reserve with regard to a possible interest rate rise in December. However those who regard junior miners as being a leading indicator on the sector have been on the front foot for a month and more. This looks likely to remain the case even if Janet Yellen and friends manage to push the button in their final meeting of the year. As far as the technical position of Orosur Mining on its daily chart currently, we can see how there has been a V-shaped reversal in the wake of a selling climax from extreme oversold RSI levels towards 0/100 earlier this month.
The turnaround was flagged by a gap to the upside through the 50 day moving average at 5.92p, with a brief sideways consolidation ahead of the vertical move to the 200 day moving average at 8.31p. The likelihood now is that there will be a partial retracement from the latest spike given the way the stock is now ultra overbought with a 80 plus RSI. However, at least while the shares remain above the initial October resistance at 6.25p on a weekly close basis, a push towards the main post March resistance in the 10p zone looks to be on the cards over the next 1-2 months. In the meantime any dips towards the 50 day line are regarded as a buying opportunity.
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