Kenmare Resources (KMR) - Golden Cross + Volume

I've been following Kenmare Resources (SP=51.5p at close on 09/02/2012) for a while and noticed today that it looks as if we have a 'Golden Cross' forming, reinforced by strong volume. See Sharescope graphs below...

The situation is a bit clearer if we take a closer look at what's been happening since the last breakout...

Recent news about the increasing chinese demand (and price) for ilmenite and rutile can only be good for Kenmare (as well as for Sierra Rutile [SRX]).

Overall, the technicals look good (Rising OBV, Golden Cross + volume & ADX), as do the growth prospects. My only concern is that I would like to be seeing a slightly more modest PSR. However, the next set of results could well show a significant growth in turnover, as a result of the combined increased output and increased price. This could reduce the PSR significantly.

Let me know what you think...