CalderCapital

HZM - Approaching Buy Zone

LSE:HZM   HORIZONTE MINERALS PLC ORD 1P
Fundamentals of HZM seem strong, with the BFS on their flagship asset due in the coming weeks. That being said, a persistent seller has been present over the past several months, resulting in the share price drifting lower.

Recent cross of the 50 and 200 MA is usually a bearish sign, and the price has now dropped below the 61.8% fib retrace level. Recent support levels line up roughly with previous resistance levels, so potential around the 3.5-3.6 levels for a bounce over the coming weeks, particularly given the RSI approaching 30.

Ultimately I think the BFS will move the share price upwards quite dramatically as the project begins to look like a reality, especially if funding plans are already progressing; in the meantime, worth keeping an eye on for a slightly lower buy price. Nickel is also looking bullish for the coming years, giving the potential for HZMs projects to coincide perfectly with strong prices.