Bushveld Minerals - Support level and buying opportunity
The fundamentals of BMN are extremely strong, with high cash generation, ambitious expansion plans underway and H1 2018 financial results due in September. For more information on fundamentals, visit www.thebushveldperspective.com.
From a technical standpoint, we've seen a recent retrace from highs (caused by a reduction in annual production guidance) which bounced off the 0.618 fib retrace level. The price came back up to the 0.786 fib line, which has previously acted as resistance for the stock with the RSI above 70. This also brings the price to the bottom of the channel defined by lows in the uptrend over the past few months.
Given that the RSI is currently down at 40 and very close to a potential divergence support line, I see the 0.786 fib line as a key level - a finish over this (23.9p) could see a run higher into the mid-high 30s over the coming weeks.
From a technical standpoint, we've seen a recent retrace from highs (caused by a reduction in annual production guidance) which bounced off the 0.618 fib retrace level. The price came back up to the 0.786 fib line, which has previously acted as resistance for the stock with the RSI above 70. This also brings the price to the bottom of the channel defined by lows in the uptrend over the past few months.
Given that the RSI is currently down at 40 and very close to a potential divergence support line, I see the 0.786 fib line as a key level - a finish over this (23.9p) could see a run higher into the mid-high 30s over the coming weeks.