Sirius Minerals in danger of fresh plunge
20th December 2018 09:30
by Alistair Strang from Trends and Targets
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After a disappointing end to the year, chartist Alistair Strang looks at how this former AIM-listed company's share price might perform in 2019.
Sirius Minerals (LSE:SXX)
When we last covered Sirius Minerals in October, we expressed some concern for the future of the share price. Unfortunately, our negative thoughts appear justified with movement since, thanks to the share price closing sessions in dire territory.
The situation now is a bit earth moving...
It would be easy to write, traffic below 19p looks capable of 16p next but in reality, once the share started trading below 22.75p, it appears 16p is exerting a magnetic attraction. We've a pretty simple issue in the event 16p is broken, due to secondary calculating at 11.5p and hopefully a realistic bounce.
Of course, there's a larger issue.
Negative news could now drive this downhill to 5p in a flash!
To get out of this mess, the price needs to first recover above red on the chart, presently at 23.5p. Such a miracle allows for traffic to an initial 26.5p with secondary, if exceeded, at 29p.
Visually, there is ample reason to anticipate a stumble at the 29p level but at least the price would remove itself from the risk of 5p making an appearance.
For the present, our best hope is for 16p to allow some sort of rebound.
Source: Trends and Targets. Past performance is not a reliable indicator of future results
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