Anglo Asian Mining: are we about to see an all-time high?
The gold producer's share beat its pre-Covid-19 level, so our chartist examines odds of further upside.
28th July 2020 08:25
by Alistair Strang from Trends and Targets
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The gold producer's share beat its pre-Covid-19 level, so our chartist examines odds of further upside.
Anglo Asian Mining PLC (LSE:AAZ)
We've had a soft spot for Anglo Asian (LSE:AAZ) since 2010. The gold, copper & silver producer, based in Azerbaijan, was one of our original software subjects when we developed our method for mapping the future.
Even when we last glanced at it in 2018, our magic was still available as the scenario mapped a rise from 42p to 99p successfully.
It's time for an update, thanks to the share presently trading at around 155p. Hopefully we remain as competent as previously!
At 155p, Anglo Asian (AAZ to its friends) only needs to exceed 159p to confirm a new path toward an initial 183p.
If exceeded, our secondary ambition calculates at 194p. The big surprise comes should the share attain the 183p level as it is exploring yet another all-time high, residing in territory with the potential of 241p in the distant future.
There's plenty going on in the world which makes the prospect of a long-term hold dangerous. But then again, AAZ is a company which pays regular dividends.
If we choose to rely on closing prices, at 155p AAZ closed the 27 July, matching the price at which the share started this terrible year. But, already, the share has exceeded its pre-Covid-19 level, so some early signs of optimism are present.
Obviously, we'd be stupid if we avoided searching for early signs of trouble.
At present, AAZ needs slip below 137p to provoke concern as this allows for reversal to an initial 127p with secondary, if broken, at a slightly frightening 102p.
Hopefully, a share we think of as an old friend, hasn't developed sharks teeth in the last 10 years.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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