As I write, it’s possible to buy junior miner Regency Mines at 0.5p, that’s a 9% discount to the recent placing price. A look at the share price chart shows the stock is at the bottom of an upward trend channel formed since the beginning of 2016. Resistance is in the form of a diagonal down from recent peaks, currently standing at 0.55p. What’s lacking at the moment is Volume.
There was a considerable amount of consolidation between 0.55-0.75p last year so I expect headwind through that price zone.
There is, of course, a risk that the share price will drift below support but Regency is arguably in much better shape now it has become debt free. With a number of Regency’s projects offering potential news flow, this low-volume quiet spell might be a good time to get in ahead of the pack.
Author: Stuart Langelaan
Disclosure: The author of this piece owns shares in the company written about above
