I don't have a grasp of the Zinc market beside a 2 dimensional Zinc futures chart. That flip level I was observing has now broken although being slightly premature with effectively 2 more treading days centered around NY sessions. It's been a long time since I saw such an extreme OS momentum indicator on the weekly! It is what it is unfortunately.
On IBG weekly chart, that negative gradient trendline is trapping price although last week there were signs of a breakout. I don't personally use trendline besides a cursory glance so this is a much an investigative study using this additional tool as the curiosity of it. Note the RSI once it broke the 50 neutral level and started to struggle to move back up eventually hitting the OS 30 zone. This indicator is just a lagging reflection of price but the trendline break coincided with the RSI trying to break to the upside of that 50 neutral line acting as a momentum resistance barrier(?).
Unfortunately price was trapped on the test of that trend line and selling occured pushing price back down and you see the RSI indicator reacted negatively. I still reckon that circa 3C zone is a great buying opportunity which incidentally was when Zinc prices were at their lowest before eventually reversing to the upside. I am not sure if a rapidly collapsing if that is what will happen to Zinc prices will have much impact on the valuation of IBG provided it can continue as an on going concern and meet all those basic expenses.
In terms of what is happening at ground zero with the perceived engineering work, the market is discounting this good news. Why is that? I have no idea but I'm sure it is on everyone's mind. I can only think of Glencore and their agenda with the amount of Zinc supply they effectively control being the only reason funding, JV, underwriting or whatever model of getting funds to progress the aspiration is meeting some resistance. Again wilde speculation personally.
If price gets to those level I might eventually contemplate a punt. Good luck to the holders.
Zinc unwinding....., page-14
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Last
0.4¢ |
Change
0.000(0.00%) |
Mkt cap ! $5.924M | |||
| Open | High | Low | Value | Volume |
| 0.4¢ | 0.4¢ | 0.4¢ | $161 | 40.28K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 21 | 23122250 | 0.3¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 0.4¢ | 21710501 | 12 |
View Market Depth
| Last trade - 10.04am 19/07/2024 (20 minute delay) ? |
| IBG (ASX) Chart |