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.