SLR's share price is affected by many factors such as price of gold in USD, AUD/USD exchange rate as the financials are reported in AUD, market sentiment like risk appetite or safe haven seeking, liquidity needed to cover other loses, technical analysis and fundamentals, etc.
The overall picture is as follows:
- SP is in a multi-month uptrend;
- When COVID-19 hit, one would expect POG to go up, instead it nose dived by 42% mainly because people liquidated their winning GOLD positions to cover margin calls from their losing positions, or simply sell and park in cash;
- recently AUD appreciated faster than POG, hence gold in A$ has actually rectraced downwards;
- There is a gap to be filled at 1.575.
The bull case:- Support provided by 50MA, bottom of uptrend channel 3, POG trending sideways and upwards, AUD retreated from 0.70
- Next price targets are 2.04 at 78.6% Fibo, 2.06 at last peak 27-Apr, then 2.31 at last peak.
The bear case:- It could breaks below 50MA and bottom of uptrend channel 3, POG losing steam, AUD back up to 0.70 or higher
- Next price targets are 1.825 @ 61.8% Fibo, then 1.68 @ 50% retracement, finally dipping into the gap with bottom at 1.575.
These are my TA thoughts, DYOR!
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