EUA Share Price Remains Range Bound As Russia Gold Ban Looms

Summary:

The EUA share price (Eurasia Mining) remains range bound, even as a proposed G7 ban on Russian gold imports looms.

The EUA share price trading higher on the day as a fallout of the proposed G-7 ban on Russian gold imports. According to a report monitored by Interfax-UK news agency, US President Joe Biden has indicated that the G7 countries plan to embargo the import of Russian gold as a means of depriving Russia of revenue worth tens of billions of dollars annually.

The proposed ban is aimed at depriving Russia of funds to further prosecute its war with Ukraine. According to an anonymous US administration spokesman, the formal announcement could be made as early as Tuesday, 28 June.

Russia is the world’s second-largest producer of gold, some of which is traded by Eurasia Mining PLC. The EUA share price hit badly in February/March after the company was linked to some sanctioned Russian oligarchs. The company denied this and also refuted claims that top insiders in the company were selling off their holdings.

The EUA share price stagnated on 13 May after trading in the company’s stock was suspended. Trading resumed a week later, but the company’s stock price is yet to recover to its pre-war levels.

The price action remains tightly range-bound, trading with an upper boundary at 7.465 and a lower boundary of 6.480. A break of the range’s price ceiling opens the door to the 9.040 price mark, the 9 May/25 May highs location. However, the breakout move must also take out the 8.000 psychological resistance, which also served as the high of 8 June/16 June 2022.

A further advance opens the door toward the 10.980 resistance barrier (21 March and 12 April 2022 highs). The 4 April high at 12.010 rounds off the northbound targets in the short term. On the flip side, a breakdown of the range’s floor at 6.480 clears the path toward the 5.975 support level.

This 7 March/18 May 2022 low is the only barrier protecting the 4.935 support target from the bears, and a further price deterioration gives the bears access to this 4 February low. If the price dips further to the 30 October 2019/10 January 2020 highs at 4.040, the price gap of 4 February is covered. Below this level, 2.500 forms a psychological support level that housed previous lows on 11 November 2019/17 December 2019.