Shares of Bezant Resources plc (LON: BZT) fell 6.67% despite the lack of news from the copper and gold mining company as sellers took charge of the price, driving it lower.
The company’s shares are still trading within a 1p sideways range, which has been in place since mid-November 2020 despite recent positive announcements such as Metrock Resources' acquisition.
A new trend usually follows sideways trading ranges, and it will be interesting to see in which direction Beant shares will break out given the amount of time they have been within the range.
The current range does not provide strong clues as to which direction the stock will take once it breaks out of the range, but traders should keep a close eye on the price near the bottom and the top of the range to catch any future breakouts.
Bezant shares are currently trading near the bottom of the range, providing an excellent opportunity for bullish traders given that its always best to buy at the bottom of a range and sell at the top to maximise profits.*
However, if the price breaks below the lower support level, it invalidates the above trade idea and indicates that a downtrend is about to begin. A positive announcement form the company could trigger a rally in future.
I’ll be waiting for any future announcements from the company that could fuel the stock’s next move, be it a downtrend or an uptrend.
Bezant Resources share price.
Bezant Resources shares fell 6% to trade at 0.21p after dropping from Thursday’s closing price of 0.226p.
