From a technical perspective, the stock chart for Dalradian Resources Inc. (DNA-T) appears interesting.
Dalradian is a gold exploration company currently focused on developing its high-grade Curraghinalt gold project located in northern Ireland, a region with relatively low geopolitical risk.
The deposit is located near infrastructure with a power substation located 27 kilometers away, and the project is accessible by roads and 127 kilometers from Belfast.
In February 2015, mining veteran and financier Ross Beaty took an initial position in the company and has a current ownership position of over 21 million shares.
Looking at a longer-term chart, the share price was in a downtrend before stabilizing in 2013. Over the next couple of years, between 2013 and 2015, the share price was consolidating, trading sideways, largely between 50 cents and $1, forming an attractive base. The share price subsequently recovered, on rising volume (a positive sign) but has been unable to break and hold above $1.60. This price level has proven to be an area of significant overhead resistance.
Should the share price break above $1.60 on high volume, and stay above this level, the stock price could rally back up to the $2 level.
Should the share price retreat, there is downside support around $1.30, close to its 50-day moving average (at $1.35) and near its 200-day moving average (at 1.33). After that, there is solid support around $1.20.
From a fundamental perspective, the stock has an unanimous buy recommendation from nine analysts. The average 12-month target price is $2.18, implying the share price has approximately 40 per cent upside potential.