Can Andrada Mining achieve success in Namibia?
23rd May 2023 05:52
by Alistair Strang from Trends and Targets
Shares in this small-cap firm piqued the interest of independent analyst Alistair Strang. Here's what he thinks could happen next.
A childhood fascination with Wilbur Smith books provided an early introduction to Namibia and the Skeleton Coast. Andrada Mining Ltd Ordinary Shares (LSE:ATM), listed on the AIM, operate in Namibia, has provided an immediate excuse to review their share price.
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Visually, there’s clearly something potentially very interesting happening at present as there’s a glass ceiling making itself known at the 6p level.
It’s worth considering the implications of this 6p level (okay, 6.05p) as the share price recently exceeded the major downtrend since 2022. This trend was defined by a high of 6.05p at the start of this year and now, should such a level be exceeded, it feels reasonable to anticipate some near-term recovery in the share price.
The immediate situation calculates with the potential of movement above 6.05p apparently being capable of triggering share price recovery to an initial 7p. Our longer-term secondary, if such a level is exceeded, works out at 8.2p, a price level where the visuals indicate an expectation of some hesitation, due to historical movements.
To trigger party time for the miner, closure above 8.2p should prove critical for the Big Picture, dumping the price into a zone where a future 11p becomes a reasonable new all-time high, along with a demand we review the share price again.
If everything intends to go horribly wrong, the share needs close below Blue on the chart, currently around 4.5p, as this would imply the threat of future reversal to 2p and that’s it. We cannot calculate below such a point.
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.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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