Should I be excited about rapid rally at Hummingbird Resources?
20th April 2023 07:37
by Alistair Strang from Trends and Targets
A strong gold price and share rally to a significant level has piqued the interest of independent analyst Alistair Strang.
Hummingbird Resources (LSE:HUM)'s share price is on the edge of some serious movements, requiring only to close a session above 13.25p to hopefully trigger some proper recovery, doubtless mimicking the price of gold which presently looks like it wants to explore life above $2,100.
Surely it’s the case such a potential for the yellow metal should impact major gold explorer share prices?
- Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
Day trade prices now above 13.75p should promote a near-term visit to 17.5p next with secondary, if exceeded, at 21.5p and a price level where the visuals almost guarantee some hesitation due to prior history.
Our underlying argument demands the share price close above 13.25p (the price level when the share last broke the Red uptrend since 2016) as this makes such a rise about as close to “safe” as it gets.
If trouble is planned, the share needs below 7.8p to signal an investment in running shoes may be wise, risking a visit to our ultimate bottom of 0.5p.
For now, we’re fairly optimistic about this lot's potentials. We’ve displayed a longer term ambition at 33p but there are a few criteria needing confirmed before this can become an official target.
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.