The drop in the price of nearly every small mining stock has been a much larger multiple of their bigger cousins (BHP etc). A bottom is usually reached through a combination of the final seller capitulating and an event causing that capitulation, in this instance OPES prime placing 2.4 mil on market.
Once the broader market starts to recover buyers are attracted back in and the price is driven as quick up as down as they realise it was over done.
Changes in commodity prices become irrelevant as confidence returns and as long as the commodity price drops are not extreme. You can see this today in BHP, people buying on confidence in the market.
CSE will out perform shortly on fundamentals, with drill results and BFS completion. Once the market gains a greater understanding of the deposits and how things will be undertaken, then they will be able to see the true value of the company.
Sellers will emerge at different levels, such as the seller currently at 36. However over the next month these guys will be taken out as the market and fundamentals over power them.
Add to My Watchlist
What is My Watchlist?