It is true, often a stock will return to a start gap position, however from a time back when I took more interest in such things I recall many (a lot) did not return, but such was the popularity of the premise these were sorta overlooked. COB had a breakaway gap, common enough and likely subject to corrections and its not a mile away from it. However my take on that particular event was that it was supported by a substantive and permanent macro shift in the asset values of non fossil energy related stocks.
I am not sure at what stage a positive correction comes into play here, I am sure it will. Without significant COB news and even with that it is hard to go against a commodity trend, I do expect the cobalt price to improve, it may well be at its cycle lows now, one to watch.
I am not so sure of the dire cobalt stories, especially not for a Western World supply out of Australia, the stories have been very effective in bringing cobalt prices along with some others, they will improve because they are no more immune from natural forces than anything else, the broader chart I pointed to in a prior post shows how quickly prices can change in either direction.
Cheers
Phil.
Add to My Watchlist
What is My Watchlist?
