Amur Minerals PLC (LSE:AMC) become one of the more unlikely multi baggers of 2014, largely on the basis that for the sector it is in the post bubble fallout was still very much exerting a downward pressure on valuations. What will be interesting for 2015, where we see a rather more friendly environment, at least initially, is how much of the gains Amur Minerals will have to consolidate, or whether the stock will simply continue the uptrend?
The near term setup shows progress on the daily chart within a rising trend channel which can be drawn from as long ago as September when the shares conquered the 200 day moving average then around the 5p level. The stock stands within a 10p -13p range, with support coming in generally above the top of the December gap – apart from a brief flushout in the middle of last month. The hope now is that Amur can be regarded as a buy on the dip towards 10p with the September resistance line projection as high as 14p the target for as soon as the end of February. Those who are cautious on the shares would wait on an end of day close back above the 10 day moving average at 11.08p as a momentum buy trigger, or wait for the 50 day moving average now at 8.85p to rise towards 10p before going long.
