$De Grey Mining Ltd (DEG.AU)$ shares soared 30.39%, with trading volume expanding to A$34.83 million. De Grey shares has rose 32.13% over the past week, with a cumulative gain of 54.58% year-to-date.
De Grey's technical analysis chart:
Technical Analysis:
Support: A$1.30
Resistance: A$1.98Price range A$1.30 to A$1.98: The trading range indicates a heavy concentration of buy orders, with the stock price on an upward trend. The stock repeatedly touched the level near A$1.30, where it found significant support and subsequently rebounded. There is a strong presence of buy orders around A$1.30, suggesting a robust foundation for the price. There is significant upward pressure near the resistance level at A$1.98, with a lot of profit-taking positions. Going forward, it will be crucial to monitor whether the stock can effectively break through the resistance level at A$1.98.
Market News :
Northern Star Resources entered into an all-share transaction to purchase De Grey Mining, with the deal valued at approximately A$5 billion(US$3.26 billion). Upon the Scheme going live, shareholders of Northern Star are expected to hold around 80.1% of the enlarged group, while those of De Grey will retain roughly 19.9%. The combined Northern Star Group will operate across two Tier-1 jurisdictions and four production centres, with Proforma Mineral Resources of 74.9Moz and Ore Reserves of 26.9Moz.
De Grey shareholders are set to receive a substantial and appealing premium compared to their historical trading prices, and they will continue to benefit from the prospective growth of Hemi.
Overall Analysis:
Fundamentally, focus on the company's performance and operational status. Technically, it is necessary to monitor whether the stock price continues to stay within the upward channel, whether the support at the bottom of the channel remains valid, and whether the resistance level can be effectively broken through.
In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.
