Zijin Mining (2899.HK): Within Bullish Channel
Ming Lam August 10, 2020 7:26 AM
Gold price keeps standing above the key psychological level of $2,000 an ounce showing no signs of fatigue...Zijin Mining is unlikely to reverse its current uptrend...
Zijin Mining Group’s (2899.HK) share price has jumped about 79% since June, boosted by the surge in prices of gold and copper, which accounted for over 70% of the company’s gross profit in 2019.
Gold price keeps standing above the key psychological level of $2,000 an ounce showing no signs of fatigue. Therefore, Zijin Mining is unlikely to reverse its current uptrend in the near future.
On a daily chart, the stock keeps trading within a Bullish Channel.
Source: GAIN Capital, TraingView
Strong upward momentum is evidenced by the relative strength index, which is well directed in the 70s.
Bullish investors should take the recent low at HK$4.54 as the Key Support (Stop-loss) Level.
On its way up, the stock is expected to encounter Resistance at HK$6.00 (around 61.8% extrapolation from HK$4.54) and HK$6.50.
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