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.
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.
