there many issues to try to get a T/A prediction at this stage:
1. TA means nothing againist fundemental changes - we've just had good news in the qrtrly about sandiego copper & that is a positive fundemental change, therefore we should expect some apprection in the market for th good news. (Positive force)
2. the DOW JONES has just lost 250 points in Friday trading & most sells were commodoties, therefore int'l sentiment is bad TODAY as a result of the US lower consumer confidence & spending that has just been released & also due to the increased unemployement figures in US. (Negative force)
3. Gold has gained some of it's loses & back to $1,046/lb & that means that selling will not be much on gold stocks/spcs (Postivie force)
4. Cu & Zn are slightly lower due to the US economic figures!! (Negative force)
Therefore, Monday trading will be somehow weird to all mining stocks because the short term sentiment is down but med to long term sentiment is up!!
how is that going to affect us, I have no idea at this stage but I see good Trading opportunity!!!
we can't just use T/A & ignore market sentiments & direction. therefore, I'll wait until this wave settles first before we try to predict a direction.
the most important part of the story is your OWN plan, if it's short term then you must consider the short term sentiment, or if med or long term then again you need to follow your plan & not get affected by other forces.
remember that the world is still in the middle of a financial crisis, so investors are still shy & very cautious.
on med & long term, metals will have to recover because we're heavily depending on China & India's growth in Australia & US market will have to recover sooner or later.
very interesting to see what will come up.
cheers,
AAR Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
