The ARCM share price has been in a bullish trend in the past few weeks after the company settled its long-running case in Zambia. Arc Minerals shares are trading at 4.02p, about 85% above the lowest level this year. However, the stock remains about 55% below the highest level in 2021. It has a market cap of about 42 million pounds, making it a penny stock.
ARCM latest news
Arc Mining is a small mining and exploration company with operations in Zambia. It operates in the copper and cobalt industry. The company’s share price has done well in the past few months, helped by the sharp upward trend in copper and cobalt prices. However, the firm will likely not benefit from these prices, considering that it has not started shipping products yet.
The most recent results, published in 2021, showed that the firm has no revenue yet. As a result, the firm has been making losses for years. In the half-year period to June last year, the company reported a loss of £3.5 million. This was a sharp increase from the previous level of £1.4 million. This loss increased mostly because of its share-based payment expense.
The most important mover for the ARCM share price was that it settled a case in March. The company transferred its 66% stake in Zamsort to the claimants in this period. The settlement also means that the firm will pay $200k in share options. So, what next for this penny stock?
ARCM share price forecast
The daily chart shows that the Arc Mining share price has been in a strong bullish trend in the past few weeks. However, this trend has faded recently, and the stock has formed a double-top pattern at 4.49p. In most cases, a double-top pattern is usually a bearish signal. The chin of this pattern is at 3.18p.
Therefore, the ARCM share price will likely have a bearish breakout in the coming weeks as demand for the shares eases. If this happens, the next key support level to watch will be at 3.18p. A move above the resistance at 4.5p will invalidate this view.