Avesoro looks poised to ride the next gold price wave (ASO)

By Richard Mason

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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.

Author: Stuart Langelaan

Disclosure: The Author owns shares in the company mentioned above

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Author: Richard Mason

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.