In short - yes. However, the situation is more complicated than that. The chart of recent SBM SP activity (below) shows a resistance line at about $5 that was formed in late June early July, which was broken through on 6 July on news of a positive production update, but momentum couldn't be sustained and SP dropped a few days later. This peak had nothing to do with the price of gold (see the second chart).
The SBM SP peak of $4.99 on 4 January coincided with (and was probably caused by) a recent strong increase in the price of gold, coinciding with a drop in the value of the Australian dollar (there was a flash crash on the Yen (apparently) which also affected AUD which then took a few days to recover, creating a false low). The SBM peak on 4Jan19 fell over the following Monday because the price of gold dropped almost $20 that Friday night (it came close to the US$1300 resistance line, but failed to get through) and has yet to fully recover, while the AUD has recovered.
SBM share price
Price of spot gold
However, your point about $5 being a psychological barrier is a valid one. Here's a screenshot of the CommSec quote screen at close on 4Feb19 showing the enormous number of sellers sitting at $5.00. There is a definite phenomenon of 'round numbers' - people like them! So I expect that when the SBM share price gets up towards $5 again, there'll definitely be a barrier to get through. I don't think it will happen unless the price of gold breaks US$1300, or else SBM announces some blindingly good news
Now, I'd be pleased if someone could explain why SBM has gone up 2.5% today as the price of gold is going sideways, as is AUD.
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In short - yes. However, the situation is more complicated than...
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Last
23.5¢ |
Change
-0.005(2.08%) |
Mkt cap ! $188.1M |
Open | High | Low | Value | Volume |
24.0¢ | 24.0¢ | 23.0¢ | $443.3K | 1.888M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
28 | 894134 | 23.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
23.5¢ | 168564 | 12 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
28 | 900084 | 0.230 |
23 | 829723 | 0.225 |
25 | 607337 | 0.220 |
14 | 310677 | 0.215 |
19 | 872964 | 0.210 |
Price($) | Vol. | No. |
---|---|---|
0.235 | 176818 | 12 |
0.240 | 941360 | 24 |
0.245 | 554158 | 16 |
0.250 | 289612 | 16 |
0.255 | 390004 | 10 |
Last trade - 13.33pm 15/07/2024 (20 minute delay) ? |
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