Is Regency Mines below its recent placing price a golden opportunity? (RGM)

By Patricia Miller

Share:

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

Share:

Author: Patricia Miller

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.