STRIKE RESOURCES 16 May MONITOR
Price: 2.65
Opinion: Strike while the iron ore is hot
Analysis:
Strike Resources is a junior iron ore explorer that is primarily working on exploiting potentially massive iron ore deposits in Peru.
Pre-feasibility studies are being performed on SRK’s projects, including extensive drilling efforts and processing plant design and further product specifications are being completed.
As the company continues to drill its deposits in Peru, this should lead to them upgrading their resources.
Just this week, SRK completed a $32 million capital raising which was oversubscribed, highlighting the appeal of SRK’s assets and the iron ore sector at the moment.
Likely Price Action:
There is now a well-built uptrend in progress on the weekly and daily timeframes, with a challenge of all-time highs looking imminent.
As SRK moves back down into the layer of moving averages around $2.60-$2.65 traders will be presented with an optimum area to consider joining the SRK uptrend.
We would adopt a long bias whilst SRK remains above $2.60. If above this support, gains are likely into next week and beyond.
We would look to buy SRK on a pullback into the $2.60 support range. We would run stops below the up trend line of $2.20.
The ultimate upside target is at $5.50.
Important Technical Points:
Resistance
Major 2 2.94
Minor 2.91
Major 1 2.88
Minor 2.84
Gravitation 2.79
Minor 2.76
Major 1 2.73
Minor 2.69
Major 2 2.64
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