Horizonte Minerals (LSE:HZM) bounced strongly off trend channel support yesterday. In addition, the move was confirmation of a firm support line at 3.5p, ensuring the stock maintains its position in the top half of the chart. To add to the bullishness of the move, the price is now significantly above its 200 daily Moving Average (DMA), having closed below it on Tuesday.
So far today the stock has tested it’s 50 DMA and a key level of horizontal resistance at 4.07p. A breakout above this level would take it to the next step up at 4.54p before the prospect of taking on recent highs at 5.2p. This really is a textbook case of testing support and proves the validity of the current upward trend channel.