I'm not really sure whats going on here. If there is more to this than I'm aware of or just the market sentiment & people hitting their stop loss? TA indicators showing sell so another bunch sell from those indicators & the snowball effect gathers steam. Feels like its crowd mentality in full swing. OR insider trading. I just cant see the IO price & Anglo deal getting postponed justifying this sell off. If I knew everything I'd be on the Forbes 500 list.
At this price it doesnt matter if the Anglo deal goes through its cheap.The IO price is still high, I wont be suprised to see it fall a bit more but I would be suprised if it went anywhere near 60-80 mentioned above, but anything is possible. I know China is playing games which has affected the IO price but I think as the world reopens from this Delta wave the governments will probably try to stimulate the economy and one of the ways is spending on infrastructure. I realize these types of projects don't get moving in the short term but that may increase the demand on steel products & at least support the IO price.
I bought in with a minimum 12 months to gauge where we are with progress, I didn't buy thinking it would rocket overnight & with this timeframe in mind I'm not worried about the current price as long as there isn't something I'm missing.
I dont as a rule average down but going by TA this is well over sold. If it opens at this price on Monday I'll throw caution to the wind, watch price action and buy as cheap as I can. I know I'm increasing my risk substantially & wont over commit, I will still be prepared to lose. My strategy will be to purchase enough to bring my average to .11 (down from .15) which I think will be a price where the Anglo deal can fall through & I'll still be happy to hold.
Good luck to me...lol
P.S - If anyone has found something other than the Anglo deal being pushed back & IO price please be a sport & get me in the loop.
MGU Price at posting:
8.9¢ Sentiment: None Disclosure: Held
