All technical signs point to a catastrophic tidal washout of AIM in the coming days.
1. Global demand for zinc is falling and price continues to weaken. 2. AIM daily volumes traded are increasing inexorably as price weakens. 3. AIM has been unable to hold support at two upper levels at 0.285 & 0.23 cents. The support level at 20 cents hinges on two bars separated by 125 bars .. the separation distance might be too distant to staunch the flow. A more promising level is around the .165 mark. Six or seven bars located there offer some hope for a recovery. 4. AIM has now fallen over 50 per cent from its high. 5. The Guppy MMA shows the long term averages are compressed and have begun their downward move whereas the the short term averages are well spaced and heading southward... a very bearish sign.
What are are the positives you might ask. Technically I cant see any until the stock has bottomed, staged a rally or two to soak up investors bailing out as AIM tentatively recovers. IMO the destiny of this stock lies in the hands of global demand for zinc. And as another poster has hinted at the worlds indices at this stage look a bit toppy... could be a long wait.
AIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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