I'm sure you'll have the torrent up hot off the screen tj.
thought I'd use this thread to give my reading of what's going on in the ASX Graphite sector this month.
So TOP of the Market Caps SYRAH.
beautiful channel formation over the long term. That bottom line is in TA terms well
the bottom line. It breaks and it's an indication to the long term holders [who use TA]
that it's time to 'lighten up'.
Especially with the 150/200 EMA's broken recently.[see follow chart]
Now serious long term holders don't just go by squiggly lines on a chart they look at has there been any fundamental change to the SYR scenario?
I suggest that the fundamental change is the Non Ratification of especially the Chinalco MOU.
This MOU for 80/100kts of flake graphite for a traditional use [anodes] but by a NON Traditional user
Aluminium gave a great boost to the whole Graphite Sector by showing hundreds of thousands of tonnes
could be added to World Demand right Now.
Before EV Batteries came on line Traditional Use Demand would "save" Over Supply 2017 +
And there was the added benefit that SYR Super Pit operation would/t 'interfere' with the current market
China Import substitution by other would be producers.
Anyhow the MOU was entered on 7/3/2014 saying ratification 3 months [early june] and well where is it?
I suggest that this delay/failure to time line ratify this MOU could be seen as contributing to the downtrend that has brought the SYR sp back to pre signing MOU levels.
Further the overdue confirmation of this New Demand has affected the ASX graphite sector somewhat bringing the Over Supply Forecast back to the Demand Equation.
So it'll be real interesting times if IF Syrah breaks down under channel 330 and continues down to supports 310/250
Was the 3 months to ratify too courageous a call? Would failure to ratify take it to $1.50 world?
