RE: 226.5p FLASH CRASH on 08th October22 Oct 2021 14:54
Hi Zeke,
Not sure about the 8th October issue you mentioned, but personally I think there is strong resistance being shown here around the 264 to 280 level.
We've been at this price banding for the last 30 trading days or so. Based on the chart technicals, the next price level down is around 194p and a) NO-ONE wants to see that level happen, and b) based on the projected revenue and profits from the last RNS, a level like that would just be ridiculously cheap and wouldn't make sense, which is why I think we're unlikely to see a drop and have flatlined for so long.
I think the market is just waiting for either another announcement which would likely be to the upside (considering market volatility and anticipated increased levels of trading and so increased profit for CMC), and then I expect the share to take off.
I think the stock is just being day traded at the moment until that happens. I expect at some point between now and the earnings call in 17 trading days we should see rapid growth.
I could be wrong though. I'm trying to hold through too so I may be biased and just hoping for the best, but I don't think so.
DYOR and let's hope my comment here doesn't age really badly. We're right at the bottom of my stop loss limit too, so I do share your concerns about a flash crash being triggered, but I would hope it would be short lived to be honest.
I'm currently really over-invested in CMC, at 10% of my portfolio, sitting at a 5% loss currently.
All the best.