Shares of Oriole Resources PLC (LON: ORR) have fallen systematically since hitting new all-time highs in mid-February despite releasing a series of positive updates since then.
Some of the recent positive announcements by the early-stage exploration company with projects in Cameroon, Senegal and Turkey include acquiring a 51% stake in Reservoir Minerals Cameroon in early April.
Oriole Resources also extended its agreement with IAMGOLD, its joint venture partner on Senegal’s Senala gold project allowing the latter to carry forward its $172,000 underspend into year 4. IAMGOLD will spend additional resources to reach its year 4 spending commitment of $1.5 million.
The bears appear firmly in control of the company’s share price despite the positive developments since each rally attempt by the buyers has been met with significant selling pressure leading to the formation of the descending triangle pattern shown below.
Most investors are wondering when the downtrend will end so that Oriole Resources shares can rally once again. Unfortunately, nobody can predict what will happen in the markets, but we can use technical analysis to predict the most likely future scenarios.
From the chart below, Oriole’s shares are likely to fall to the 0.6p region and then rebound from the level, which acted as support in the past. The current setup is quite bearish; hence, we could see further declines. Traders should watch the support level to see if it holds, indicating that the downtrend might be over.
Oriole Resources seems to have a bright future as its operations are on track to meet the management team’s goals, which its share price does not reflect. Investors are hoping that the situation will change soon.
Oriole Resources share price.
Oriole Resources share price has fallen 61.98% from its mid-February high of 1.92p to its current price of 0.73p.