Is EUA poised to bounce on the PGM/battery-metals super cycle

A huge amount of news, operational progress and institutional buying into EUA over the last 12 months has been coiled up into a highly depressed share price. The chart analysis details the dates and summary all of the announcements and the effect they have had on trading patterns, volume and prevailing SP. The bottom was reached at 15p on 1st September 2021 but has been on a near vertical rise back to early II placing prices since. Significantly, it is back to a level above a recent private placing worth $20m at 26.5p

Hints of a super cycle forming in PGM group and battery metals has dovetailed with EUA's positive turnaround. Platinum, Palladium and Rhodium are all in EUAs basket and showing positive sentiment. Outages in other PGM producing hotspots and the anticipation of exponential demand for green technology are leading to a potential global supply squeeze situation. The wider market fundamentals are very supportive from lots of angles. A perfect storm one might conclude - augmented by EUA's well documented plan to sell off some assets and/or enter long term JV's with partner industries.

The recent rise from 1st September has lead to both the 200 day VWAP MA (black curve) and the descending wedge line (purple dashed line established 3rd December) being breached with significant momentum. The money flow and increased volume point towards this rally having further to run and that it has justified market support behind it.

Is a further re-rate is on the cards? Quite likely IMO the question is at what level does it top out..... mid 30's, closer to the ATH of 45p or beyond?

I welcome the Trading View communities thoughts on this from a technical perspective - especially someone with Fib retracement skills.

Thanks for reading.

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.