WMR bounced off a key support level at $4.98-5.01 today. This is the 38.2% fib level using the latest range pattern $5-38 to $4-33. A clear confirmation imo
So a move below $4.98 means a further fall to $4-85 (50%) initially, below this $4-73 (61.8%).
The alternative is that there is a short term rally in the nickel price in next few days and WMR trades within a $4-98 to $5-13 range for a while. The traders are buying at the moment because they believe it WMR is at the bottom of its range, however, further decent in the PON will catch them out here.
Technically, I believe the PON will fall further - looking at a consolidation around 5.60-5.70 $USD per pound.
Out of all the nickle producers, imo WMR moves the slowest in reaction to movements in the nickle price. However it invariably catches up with it, usually a few weeks later. Right now I think the stock it is trading above where it should be. Below $4-98 is a short sell with a stop just above this level.
