AMC - Amur Minerals

Where does todays spike on news leave us from a TA perspective? It failed to take out recent high. Is 13.5 still a realistic target is is this heading back down?

screencast.com/t/29EOTTFvOP4

Forgot to include a chart - Breakdown on RSI - Bounced of trend line and 50% fib of this move.

screencast.com/t/uEuFhOrPn

Hi Remo - What is your take on AMC - It pierced the breakout point today but closed above. Is this still bullish? Where should stops be placed?

Many Thanks
SE

Hi B77,

Yes, you're right that this is not the best example of a share to trade on the technicals but you can still apply the principles.

I had no knowledge whatsoever of any potential newsflow when Shotry highlighted the iHS on this last week but the chart looked good so I took it. There are clear resistances as shown here:



dl.dropboxusercontent.com/u/20815047/AMCdaily16_05_13.gif

It's the spread and the consequent large (apparent) daily swings which make the chart look so volatile but it still respected the levels approximately. Yesterday even backtested the breakout:



dl.dropboxusercontent.com/u/20815047/AMCdaily16_05_13a.gif

I'll be exiting at the target which, as remo pointed out, is c. 13.5p - right in between those two levels (remember to allow for the spread) - regardless of whether news comes or not. If it doesn't then there may be the sell-off you suggest. If it does then it may sell off anyway in anticipation of a lack of further imminent developments.

In the meantime, as long as we have stops in place then we are protected against large falls (slippage issues aside).

Even if I get my 13.5p exit and it motors on to 22p I won't mind. I'll have made a good few £s (thanks Shotry) and I'll move on to something else. There's always another one out there somewhere!

ATB

There was discussion on this at the turn of the year.
Probably more relevant now:

chartsview.co.uk/general-trading/583-amc-breaking-out#2693

The only watch-out is that so much hope has been pegged to the '60 days' expiring next week that if an announcement doesn't come, the hot money that has taken it through the 10p mark might run for the hills as next license review could be November. It's not the most liquid share and the spread can be punishing. The plus side is that those attempting a technical trade for a couple pennies from here might get a nice bonus of a positive RNS and spike.

hi geela
Thanks for that. Its always nice to know a bit about the company
cheers mate

Geela wrote: Remo,
While the charts are amazingly accurate there are some strong fundamentals on this one too - the 60 days guideline for Rosnedra to award the final licence are up next week (the share hit 22p on notification that 3 out of the 4 licences had been awarded a few years ago. Also there is a JORC due in Q2 so within the next six weeks (as per the CEO in email) and the last time they had a JORC update it was 341K mt of Ni and that was in 2007. Since then they have discovered higher grades of Cu and Ni and the feeling is that it will be over 500K mt which would make it a Ni region and of significance to big players in the mining business.
I am in long with two positions and hold shares in my portfolio which I have had for a few years, traded a couple of times but still hold now - this is my biggest holding.