Premier African Minerals: more to come or is rally out of steam?
4th April 2023 07:40
by Alistair Strang from Trends and Targets
This small-cap miner has already unearthed big gains for investors, but what now? Independent analyst Alistair Strang consults his software for clues.
We like it when emails received over a few days all address the same subject. Generally, it’s a pretty reliable indication of traders awaiting “something” important happening and, in this instance, it looks like the market is awaiting something positive for Premier African Minerals Ltd (LSE:PREM).
Thankfully, whatever is going on doesn’t feel like misplaced chatroom optimism, if only due to the inset area on the chart below.
- Invest with ii: Open an ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
On 13 February, the AIM market decided Premier should be gapped/jumped/manipulated (circled) above Blue on the chart, presumably with an imminent expectation of positive news. Alas, a further month was to pass without anything interesting happening, aside from the market taking exceptional care to ensure the share price didn’t retreat below the Blue historical downtrend since 2015.
Our suspicion is this shall prove to be a positive signal, on the assumption the company finally get around to issuing news the markets like.
Presently trading around 0.93p, the share price allegedly only needs now trade above 0.97p to trigger price gains to an initial 1.55p with our secondary, if exceeded, calculating at an impressive 2.15p. It’s certainly not often we find ourselves speculating as to whether a price will double, fairly near term. Overall, our software is trying to make us believe a distant 3.6p could even be exerting a magnetic attraction for the future.
If choosing to look for reasons to panic, Premium African Minerals needs to close below Blue, this doubtless being a solid suggestion that something has gone terribly wrong for the company. Any movement such as this dumps the share price into a region where 0.14p has nominated itself as an “ultimate bottom” for the share.
Hopefully this shall prove worth keeping an eye on in the days ahead.
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.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.