UPDATE: Merafe entered into a sideways Twilight Zone What's next

We see Merafe has definitely entered into a Rectangle formation.

Price is remaining above the 200MA where it could range between the high and low.

We definitely need a breakout to the upside, before we see upside. The target potential will be at R1.61 if the price breaks above the Rectangle.

Now I wouldn't be that positive and optimistic with this analysis, due to the bad numbers released with ferrochrome.

UPDATE:

In a strategic move that echoed the prevailing market conditions, Merafe Resources, the South African ferrochrome producer, reported a considerable drop in production for the year.

The company's attributable ferrochrome production fell by a substantial 22% from 384 kilotons in the preceding year to 300 kilotons.

This planned reduction in output was primarily driven by the high electricity demand during the winter season, characterised by escalated power prices. As a result, the Lion smelter was the only operational facility during this period.