Vedanta shares touch seven-month high

A weaker set of earnings has done little to halt the upward push in Vedanta shares, which are heading north of £10 today, reaching their highest level since November.

Full-year earnings were down 8.5% for Vedanta, as a result of lower copper and zinc production, as well as metal prices that have been lower over the past year.

Having been unceremoniously ejected from the FTSE 100 in 2013, Vedanta shares have been hit hard on a longer-term outlook. Over the past two months however they have made good progress and are now reaching levels not seen since November 2013.

The 936p-946p area provided significant upside resistance for the share price, with three attempts to break through here (right at the end of 2013, in January and then in February) failing. Even the ultimately successful rally through this region took time to come good, with around a month of directionless movement before the latest breakout.

The key test now, as can be seen on the chart below, is whether the price can hold above £10. If it can, then an attempt on the November high of £10.95 is perhaps in order.

Vedanta Resources chart

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