Interactive Investor

Why Bluejay Mining shares are worth watching closely

10th August 2022 08:03

Alistair Strang from interactive investor

After a 43% leap in its share price yesterday, independent analyst Alistair Strang examines the AIM-listed miner.

Bluejay Mining (LSE:JAY) are centred on Greenland. They are focused on a mineral sand called ilmenite (or limenite), essentially the most important ore of titanium, used in producing lightweight strong metal components. In addition, titanium oxide provides substantial longevity in paints, inks, plastics, and so on, even somehow including some foodstuffs. This latter fact falls into the category of I don't want to know.

Im writing about Bluejay Mining, thanks to a few emails seeking an opinion on their share price future potentials. Its not difficult to understand why folk are suddenly interested, thanks to their share price experiencing a 43% leap on 9 August. Hopefully its not just the result of spurious internet chatroom gossip, especially as the upwards surge has landed the share in a pretty comfortable position, making further advances a quite viable proposition.

Movement now continuing north above 7.05p suggests the potential of a visit to a warm-sounding 8.8p next. Should the market successfully close above this level, our longer-term secondary calculates at 12p.

Normally, wed simply say if 8.8p is exceeded, our secondary is 12p, but in this instance, with such a massive jump, we are understandably nervous at the risk of creating enhanced expectations. But we will admit that a visit to 12p makes a lot of visual sense and closure above such a point risks becoming game-changing for the long term.

The share price requires to fall below 4.3p to suggest investing in running shoes.

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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