Technical analysis for VAST

Wednesday, 30th May 2018 10:08 - by Rajan Dhall

Vast has pulled away after a failed test of its highs recently, normally a lower high and a break down would make me bearigh on a share but in this case I think once we find a better base of support we could see another move higher. 

This morning the Co.  announced that following a series of meetings with Baita SA, the holder of the Baita Plai Head Licence, and at which a representative of the Ministry of Economy was present, the Company has now agreed additional detailed terms, as set out below, in preparation for the formal approval of the Association Licence Agreement with Baita SA giving the Company the right to mine at Baita Plai.

The Co. has agreed, at an initial rental of €40,000 per month, a lease from Baita SA of various mining equipment and, more importantly, access to the previously mined out upper galleries at Baita Plai owned by Baita SA.  The two initial €40,000 payments totalling €80,000 are to be paid up front by Vast thereby acting as a guarantee in favour of Baita SA.

So after the shut down at the mine in Manilla it looks like it's full steam ahead for the Co. question is if they can deliver. Technically I am looking for a break of the 60p level to confirm a move higher and if we so see some serious support around 45p with some downside rejection price action (hammer candles) this would further increase my conviction.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.