Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

This resource investment stock could really fly

There has been a significant change in the fortunes for shares in this investor in the natural resources sector.
no_picture_pai.jpg
The charts suggest this resource stock is headed higher.

Polo Resources PLC (LON:POL) shares have moved from bear to bull territory, according to a leading technical analyst, who reckons they could go as high as 14p.

Zak Mir, in his regular spot for Proactive Investors, noted the change in Polo’s fortunes began around 10 months ago.

“The chart reflects the big turnaround at the end of December, recovering the 50-day moving average and then recovering the 200-day moving average – a trend changing event,” Mir said.

“[This] takes the shares officially from a bear trend to bull trend… That happened in mid-April, and really we’ve been right above the 200-day line ever since.”

Currently, the stock is changing hands for 5.6p, having risen more than 40% in the year to date as it has hung onto the coat-tails of the boom in the mining sector.

There is the potential, in a couple of steps, for Polo’s stock to return to levels last seen in 2014, Mir said.

“From a chartist’s perspective you’d be looking for a little bit of progression in a rising trend channel, based at 5p, and currently heading towards the 8p area which offers reasonable upside from current levels,” he explained.

“If you’re cautious, maybe wait for a break of the 50-day moving average now at 6.09p before going long, but this does look like an extended turnaround situation.

“You can see that in 2014 the shares were as high as 14p, and this looks like the type of slow turnaround that you expect for the shares to be able to return to those values sometime, hopefully next year.”

Polo’s assets span gold, coal, phosphate, iron ore, copper and oil and gas, with investments in projects around the world.

View full POL profile View Profile

Polo Resources Limited Timeline

Related Articles

Aspire Mining's David Paull at Proactive's CEO Sessions
November 16 2017
David Paull presenting at Proactive's CEO Sessions.
Burning coal
November 24 2017
The coal mine and mine mouth power station developer expects 2018 will be a game changer as its Pakistan project takes shape

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use