Chart of the Day: A breakout at 14c could see Noronex retest 19c level
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Noronex (ASX:NRX) has slowly been consolidating in a very modest uptrend since relisting in November of 2020.
It has periodically maintained the ability to capture the market’s attention with moves in uptrend toward a high of 19c in June of this year.
The 200-day exponential moving average as seen in light blue has been providing some support to recent price action.
The other short-term simple moving averages are descending toward current levels, potentially setting the stage for a more material move.
The company trades on an un-demanding valuation in the order of $23m, and has a variety of longer-term holders who are aligned to the medium term success of the venture.
Noronex just completed a 12c raise to many of those holders for the acquisition and exploration of further Namibian copper assets considered to be highly prospective.
From a technical perspective we are keen to see 12c hold, and the preference would be for the uptrend to remain in place also which currently checks in at approximately 13c.
A break of the short-term downtrend and moving averages at 14c may set the stage for a retest of 19c.
It is one of the larger exposures in the IMA at present – and whilst we acknowledge that at least to date the company is somewhat limited in terms of liquidity – should they experience success with the drill bit, we imagine that will quickly be addressed.
Steve Collette of Collette Capital Pty Ltd (ABN 56645766507) is a Corporate Authorised Representative (No. 1284431) of Sanlam Private Wealth (AFS License No. 337927), which only provides general advice.
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