GFM - Griffin Mining

This came on my radar last week when I bought @ 30.5 - I placed a limit order to sell at 33.25(just under previous resistance. However, on reviewing the technical AND (don't shoot me here) the fundamentals aswell - I quite fancy a longer term position in this share.

Just a look at the weekly chart:




Currently, I suspect it to respect the current technical resistances in the 33/34 range (both horizontal and channel trendlines). Note the RSI, a classic case of bullish divergence. I have noted before that more often than not, there is a 3rd touch on a diverging RSI trendline. If this happens, and still seems consistently bullish, this would be my long term buy trigger, even before a potential break of the channel trendline plotted. There are some clear target prices up above.

I would personally take some off around the 38.2 & 50% fibs as I am sure, and possibly keep a greedy trade on for a 1 year + target.

I would add on a break and retest of the channel or horizontal support for short term trades.

Fundamentally - I won't go into it, but it is one of the reasons I feel this trade is less risky.
It is surprisingly a cash generating company, and not low revenue, profits of $11m+ for the last 2 years, AFTER TAX, and hasn't had a loss in the previous 6 years. There is also upside potential on its acreage. Huge upside potential apparently. The company is only valued at around £60m at the moment after falls from hefty heights as per chart.

Disclaimer - I am not a holder of the company, was only a trader last week, but on further research, I am seriously considering a position