The EUA share price has continued its consolidation nearly two weeks after the stock resumed trading on the London Stock Exchange. However, price action remains choppy as investors refrain from making cautions bets on the Eurasia Mining PLC’s direction.
Trading on the gold and platinum group metals producer’s stock was suspended on 16 May, but the suspension was lifted two days later. Since then, the stock has sat on the 7.465 support amid narrow trading ranges.
The company faced immense scrutiny over links to Russia when the war in Ukraine broke out on 24 February. Its stock sold off steeply after other Russian-linked and Russian companies operating in this space were sanctioned.
The slide in the EUA share price ended after the company escaped sanctions, but this has done nothing to improve the sentiment on the stock. Speculations of massive stock sales by company insiders did not help the situation, despite denials by the company’s top hierarchy that this was the case. The EUA share price is up 0.07% on a day characterized by low volumes.
The descending triangle’s breakdown of 5-21 April resulted in a slow but gradual continuation of the selloff, attaining the completion point of the measured move at the 7.465 on 3 May. This 7.465 support remains the barrier to beat for the bears. However, if they surmount the bullish defence of this price point, the price could cascade lower, targeting the 18 May low at 5.975 initially. Below this level, the 4.040 support (30 October 2019 and 19 January 2020 highs) becomes a new downside target.
On the other hand, recovery follows a break of the range’s ceiling at 9.040 (9 May/12 May/18 May highs). This break opens the door toward 10.735 (7 April high). A further advance targets 12.010 and potentially 13.945, where the previous high of 30 March is found. Otherwise, the stock may be in for an extended period of range trading if there is insufficient momentum to break down the range formed by 7.465 and 9.040.