A dramatic reversal from 12-month lows saw Orosur Mining shares double in days after fresh news from its El Cedro prospect.
Orosur Mining (AIM: OMI) has staged a sharp turnaround, with shares roughly doubling from a 12-month low of 13p to hit a 26p technical target within the space of a fortnight, as newsflow from its El Cedro prospect reignited investor interest.
The rally followed weeks of nerves among holders after the stock slid towards those year-lows earlier in September, with some observers questioning whether the well-known private investor who has backed the shares had lost his touch. That scepticism was answered decisively once the company released news on El Cedro, sending the stock sharply higher and through resistance levels that chartists had been watching closely.
The move was flagged in advance by technical analysts, who had pointed to a broadening triangle pattern on the chart with a 26p target once the shares broke above 15p resistance early last week, a level the stock cleared before running on to hit the target almost exactly.
Orosur's rebound is one of several small-cap swings highlighted in this week's round-up of AIM movers, alongside takeover-driven jumps in Dianomi and renewed bid speculation around Oxford Biomedica, underlining how quickly sentiment can turn in the small-cap space on company-specific news.
Investors will now be watching for further updates on the El Cedro prospect to see whether the newsflow that sparked the rally can be followed by more substantive drilling or resource data, which would be needed to justify holding gains built largely on renewed speculative interest.
This report is based on Orosur Mining’s announcement and coverage by Share Talk. Company announcements can be tracked via London Stock Exchange RNS and Investegate, and the full results calendar is worth watching for the next update.
This article is for general information only and does not constitute investment advice or a recommendation to buy or sell any security. Photo: Dion Beetson on Unsplash.
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