Paternoster Resources (LSE:PRS) has just hit the bottom of its current price channel, and the Relative Strength Index (RSI) is screaming ‘oversold’. The Resources investment company recently underwent a transformational deal with RiverFort Global Capital. There’s an initial resistance trend line (dotted), currently causing a barrier at 0.096, with 0.11 the next step up, but fundamentals speak louder than technicals in this case. The company has a Market Cap of just £1.7m – a sizeable discount to its net assets as of 30th September which was £2.98m.
It may take news of ongoing deal flow to spark a full reversal of the current downtrend, but at such a discount to Net Asset Value (NAV) today’s share price could prove to be offering an exceptional entry point.
