Sibanye has dropped beautifully with the INverse Cup and Handles...
That was until this month where the price broke above the downtrend for the first time.
Now to short is a risky business as the momentum is looking up and the buyers are taking over control.
This overlays with the boost in the Gold and Platinum price and the general resource market upturn....
Yes we made a probability prediction on this large move down.
It's close to the target of R16.89.
But it's never good betting or hoping for a stock to crash and burn.
There is no scrip to short, so the only good thing about this analysis is brining awareness to investors who think it's cheap to buy and then they wake up 23% down...
This is a reminder that...
Sibanye has been on free fall since February 2021...
It then formed a large Inverse Cup and Handle which broke below the brim level around R36.00...
Recently it formed a smaller Inv C and H which the price also broke down and out of.
And no matter what happens, the downtrend stays intact.
It still looks like this company is going to drop further to around...
Sibanye Stillwater Limited, together with its subsidiaries, operates as a precious metals mining company in South Africa, the United States, Europe, and Australia. The company produces gold; platinum group metals (PGMs), including palladium, platinum, rhodium, iridium, and ruthenium; chrome; nickel; and silver, cobalt, and copper. It owns the East Boulder and...
Gravity seems to be strong for PGMs miners. After several attempts to stay above R32, JSE:SSW has given up. R22 does seem like a possibility.
Froneman, do something.
It obviously depends on how far you zoom out and how you draw the trendlines. However, the chart doesn't paint a good picture for JSE:SSW
Buyers are needed to step up and save the stock. No position.
This is definitely not my usual type of trade setup.
I don't like predicting market reversals.
I don't like catching the bottom and the top
I don't like trading without a solid chart pattern
So I am not taking this trade, but showing a major observation.
There has been a solid support forming over the last few months. Every time, Smart Money brings the price...
Potentially a long opportunity coming up on $JSE:SSW.
The stochastic and the MACD both signaled this earlier on, but the EMA's have now crossed which confirms the trade.
We are looking for a target at around the 4800 level.
Our target price after a few weeks hit at R35.77.
We are still seeing a strong downtrend a long with the RSI<50 and price <200.
Precious metals aren't showing strong upside to come with the strengthening US Dollar as well as the fear of rising interest rates.
I'm steering clear for now.
SSW Update The M formation formed nicely, broke below the neckline.
The price is coming down as the supply increases and the momentum is still down.
7<21<200
RSI<30
Target remains at R35.77
ABOUT
Sibanye-Stillwater (founded in 2013) is a mining company based in Johannesburg, South Africa, that specializes in precious metals extraction.
As a spinoff from...
After turning bullish on JSE:SSW , the market decided to give us hands. One badly mismanaged position. At best we could've broke even on this trade.
Onto the next one.
Keep an eye on Palladium here... looks to be consolidating in a neat bullish falling wedge formation. More importantly, the RSI is making a series of higher highs (divergency) which is warning of a rally to come...
Might be worth looking at a couple of the palladium/platinum plays... Sibanye, Impala, AngloPlat, Northams etc which would be beneficiaries if this plays out
We've noted several PGMs turning bullish in the past few weeks, and we have an JSE:AMS position. At the moment JSE:AMS seem to be retesting the (rising) 200MA, if it find support there, the stock may continue to rise, especially if the sector is turning bullish. Other notable players are JSE:IMP & JSE:SSW (position)
Cup and handle has formed over the last few months.
7> 21 but Price <200 MA - Almost fully bullish
Target R55.86
This goes in line with the Santa CLaus Rally and the rally for resources which are following the JSE...
Bullish Bias
JSE:SSW is looking good for a short position based off of our momentum indicators. The stochastic, MACD and two EMA's have all crossed downwards. If triggered, we are looking for a target at around the 3580 level which is a strong support level making the target area a bigger possibility.
JSE:SSW is currently trading above the 200MA. We noted other PGMs miners turning around, JSE:AMS was among the first to crack up. Could this be a trend change for TVC:PLATINUM stocks?
This move negate all the previous bearish tweets/analysis.
W Formation formed in the 4 hour chart.
The Price is above the 200MA and things are looking like buying is taking place.
I am Bullish with Sibanye and expect a target of R51.83.
