Shares in Mexican-based precious metals miner Fresnillo ABGL.L add 3.6 percent, one of the top FTSE 100 .FTSE gainers as strength in the sector supports a blue chip rally, with Galvan Research highlighting technical support for the stock.
Galvan’s head of research, Andrew Gibson, says Fresnillo shares have once again bounced off the 1,300 pence support zone, in place since the start of the year and so far tested successfully on four occasions.
“While the May bear trap low of 1,275 pence remains unbroken, the upside implication here is towards the current 200-day moving average level at 1,420 pence,” Gibson adds.
Safe haven buying of precious metals in the wake of the Arab Spring and Japan disasters ensures that demand for Fresnillo’s output remains as strong as ever, and this coupled with the recent decline for the share price back to 2011 support marks the stock out as a buy at Galvan.
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