Amur Minerals (LON:AMC) may have been a somewhat unlikely candidate in terms of being one of the better recovery plays among small caps plays in recent months, but as can be seen on the daily chart since the autumn of last year, the recovery pattern on the daily chart has been impressive nonetheless. The vehicle for the ongoing rebound is a rising trend channel which can be drawn from the end of August, and which has its base running towards 7.5p – the floor of the price action this week. What is interesting currently is the way that so far February’s low has come in above the former December floor at 7.05p.
This figure is probably the favoured end of day close stop loss / money management point, as we look towards a fresh leg to the upside. The favoured destination here while the former late support of last year remains in place on a weekly close basis. In terms of the potential technical target here, it remains through 14p, a 2014 resistance line projection, a decent 1-2 months timeframe destination. At this stage only cautious traders would wait on an end of day close back above the 20 day moving average at 9p as a momentum buy trigger before pressing the buy button.
