Furtim
Long

Horizonte Minerals (HZM) - Long Trade

LSE:HZM   HORIZONTE MINERALS PLC ORD 1P
Horizonte Minerals PLC is a United Kingdom-based nickel development company.

Monthly low in Feb 2009 (red horizontal line) target entry. Which is also the gap fill 'region' created in August 2019.

Hammer candle formed on daily today. Suggesting todays drop was overdone. Also starting to look oversold on the daily.

2:1 Risk/Reward trade.

TARGET: 4.4
STOP: 2.8 ( ish ).

Downside: 15% risk to below the daily 200ma which is around 2.89.

Weekly 200ma is around 2.96 and 78.6% FIB is around 2.80.

Both daily and weekly moving averages, as well as the FIB level should act as half decent support.

Upside: AT LEAST 30%. Back to 50% level and previous (recent) highs.

Fundamentals: Further funding news is expected in the not too distant future. This week’s drop looks overdone. Drop in nickel price and global markets getting hammered are most likely to blame (rather than a company issue).

Notes:

I have taken a ’trade’ today at 3.26. Shorter term.

However, HZM is also one I hold as a long term investment in an ISA (and have done since 2015). With a 2p average. Thus, my ‘trade’ view may be biased because of my long term holding ;-)

Comments

This bounced today just short of the fib, I put an order on for tomorrow, GL to us both!
Reply
Watching this, but I think it's late on Friday for an entry. I wonder why you chose to ignore the fib at 2.98?
Reply
Furtim kryptochristo
@kryptochristo, I didn't ignore it. Nor did I ignore the 200ma just below it. When such levels are tested, prices tend to 'poke' through intraday. Hence why my exit level is below both.

It is also worth noting that I use open/close prices of candles for entry and exit points. Rather than highs and lows. I am not overly concerned if price 'pokes' through a level intraday. For example, if price pokes down through the 2.98 FIB level, it is just testing it. It is only once it has closed below it that it becomes of more importance (to me).

As the trade is focussed on a 30% upside movement here. Then a 2:1 risk/reward play means the risk can be as much as 15% to the downside. Which sits nicely out of the way of the 2.98 FIB level and 200ma. Both of which could well be 'tested' before the move upwards commences. Especially as HZM has a habit of tracking Nickel price. Usually with a bit of a lag though.

By the way. For what is is worth. An awful lot of my share purchases carry Friday afternoon dates on the contract notes. Day traders don't usually like to hold over a weekend, but will be happy holding overnight in the week. It is not uncommon therefore to see a Friday afternoon drop sometimes because of this (not always of course). Which gives a greater entry point, and, something I have often taken advantage of over the years to lower my entry points on shorter term holds. Monday can have the reverse effect, shares can pull up as the traders move back in for the week.

Cheers.
Reply
@Furtim, Ok Cheers, I wasn't being funny, just wondered why, i'm still learning and asking questions.
good luck
Reply
Furtim kryptochristo
@kryptochristo, I didn't see your question in any way other than a genuine question. Quite honoured you asked to be honest :)
Reply
@Furtim, cool!
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out