We have covered gold producer Avesoro Resources (LSE:ASO) a number of times, last highlighting it as a potential mover 2-weeks ago. The stock price has taken another look above the current trend channel today and bumped its head on the 50 Day Moving Average (50 DMA) at 265p. A close above the moving average would bode very well for a further climb from here.
The gold price has been dropping against a rally of the US Dollar, and a headwind of seasonal price weakness (as discussed recently in my article here).
The US Dollar Index appears to have hit resistance, so a recovery in precious metal prices could be on the cards over the next few weeks. This factor, combined with Avesoro’s strong fundamentals and potential technical chart set-up, might offer a good opportunity to ride the next gold price wave.