Shares of Canada focused metals exploration company, First Class Metals got off to a dream start in August around the 9p level, peaking at double this level in December. Perhaps the name of the game since then has been how much the shares would retrace – a third, a half from the peak, or a more esoteric number? Late today we had our answer, with a sharp swing from 11.75p versus a 14.25p close. Given that there are relatively few shares in issue (66 million), lots of director skin in the game, and even venerable Twitterati investor Afzal Valli on the register, who helped finance the Sunbeam acquisition as announced in October, alongside Sanderson Capital. Against such a backdrop alone, one can surmise that the pullback from 18p is now officially over.
Broadening Triangle
The shares are in a broadening channel on the daily chart which can be drawn from the summer. The resistance line projection of the top of this channel is heading for 22p, which could be hit as soon as the end of this month, while the 12p main support zone is held.
Price Versus News
Indeed, those who like the interplay between the price action and newsflow will have noticed that today’s share price jump was a somewhat delayed reaction to the RNS from the company on Thursday in the form of the McKellar & Magical Exploration update.
The kicker here was perhaps the end of the CEO’s comment in the update which said that the company was “still awaiting the final results for the Esa soil sampling as well as the ongoing Winter programme of the lake sediment sampling over 4 of the claim blocks.” Presumably, we will not be waiting long on this, or any of the other multiple projects the group is sitting on such as the double digit assays at North Hemlo revealed at the start of the year.
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