MMX holders tune into this track - Jay Sean ft. Lil Wayne - Down
Murchison Metals (MMX) is a stock that I first wrote about in early September and I was bullish on the stock at the time. But then shortly afterwards there were a few warning signs that things weren?t all well and full credit has to go to The Australian who were the first to pick up on the problems. It was this article that broke the news of problems emerging, and despite the company attemtping to defuse the issue by making a number of statements denying there are problems, the share price has continued to slide and has fallen by more than 50% since.
During the past several days in particular there has been quite a savage sell off and on Friday a major support line at $1.40 was broken with the share price opening at $1.48 and collapsing to a low of $1.35 before closing slightly higher at $1.375. In my follow up post when the warning signs first emerged in late September, I gave a few support lines to look out for as possible entry points to short this stock.
$1.74 was the first level to watch for and then there was another at $1.50 and then the major support line at $1.40.
On Friday we saw that major support line get well and truly breached and yesterday I suspect the company placed their shares in a trading halt as a result of this collapse. Today the company provided another update which once again attempted to affirm the strong fundamentals backing their infrastructure and development plans.
To me it came accross as a last ditch plea to gain approval from the Western Australian Premier, Colin Barnett and it seems the market also read it that way with the share price once again resuming it?s horrible slide.
Murchison Metals opened at $1.36 and fell to a low of $1.115 before late buying saw a partial recovery to a close at $1.20.
Despite the strong buying in late trading my feeling is that further falls are on the way.
From the CHM GANG! LOL
MMX Price at posting:
$1.20 Sentiment: Sell Disclosure: Not Held
