After a quiet start to the year, the Ironveld (LSE:IRON) share price spluttered into action last week following a brief operational update RNS from the company. An upward price channel (shown in purple) had formed in the second half of last year before a dip back below to around the last 2p placing price. After 2 months of consolidation under low volume conditions, the share price tapped the lower line of that upward channel before backtesting recent levels. Today, the price is moving back up, and it looks like another attempt to burst back into that upward pipeline could well be on the cards. This is likely to be in anticipation of much-awaited news regarding the acquisition of a smelter as discussed in our previous article. A move back above the lower channel line of resistance – currently at 2.4p – could signal a further climb towards the 3p area, with news likely to be needed for any further advancement in the share price.
Author: Stuart Langelaan
Disclosure: The author of this piece owns shares in the company written about above