We maintain our bullish bias on Gemfields which should continue its bullish trend in order to test new highest level.

The economic and financial situation of the company is still strong. Debt is decreasing rapidly and the leverage is reducing at 0.77. EPS estimates for this year and that let see a great potential for the security on the stock market.

Technical patterns are in the green: prices are up for several months. The movement should continue in the coming trading sessions. The 20-day moving average should help to reach the GBp 37.5 long term resistance.

Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position on the support at GBp 33.75 in order to benefit from a possible reversal. The first target price is the GBp 38.5 resistance. A breakout of this level will be a new bullish signal for higher target price. A stop loss will be placed under the GBp 33.75 short term, threshold that would invalidate this trading strategy.