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There is very less probability of SP touching this level (ofcourse if Covid situation go worse then anything can happen but its unlikely), but the upcoming dilution will definitely push SP south. I think 6.5 levels are on the cards, may be a bit low but some good news about travelling in the coming time could change the scenario.
@newbie
Update**
Now I can see the rights issue news at my news monitor at Refinitiv. So its legitimate. GLA
@Newbie
I think the news is legitimate. However, I have access to Refinitiv Eikon and my news monitor does not show this there yet.
that if you have bought any EasyJet shares today, those shares are not eligible for buying the rights. GLA
I think this stock is due for a big correction because of following reasons:
Price is moving upward from the past 7 months and now has been above its 200 week MA by more than 100% (definitely an outlier)
Monthly Relative price strength i.e. RSI is 83 (overbought)
Volume is shrinking.
Strong pound would shrink the earnings.
Joey.. opening short below 200p was always like inviting big trouble!! the sp was way oversold at those levels and far far away from the 200d MA.
Wait for few days and you will be very much sure.. Anyways its Friday and the day traders are not going to hold it over the weekend especially in this volatile environment.
Now it has become a wonderland for shorters at these levels!!
Thanks Carvegyber. I take short positions on CFDs, so basically its just 0.01% commission plus a small spread. So time horizon does not really matter in this case. My order was triggered on 10th Sep at 1330, so the position was open for around 11 trading days.
My main portfolios are with physical stocks through ISA and I am very much bullish for FRES long term. I am scanning the markets for potential outliers and FRES seemed to be a good trade to me at that price. Risk Reward ratio was also 1:2, so all-in-all a good deal.
So my analysis (short term) was absolutely correct. FRES hit the 1150 levels today as predicted. I hit my tp today, so my short is now closed. GLA
But what about shorters.. what will happen to them.. seriously this board is so picky to answer..lol..
But what about shorters.. what will happen to them.. seriously this board is so picky to answer..lol..
Sorry but I cannot see even a single post discussing RI's impact on short positions. If you donot know the answer.. fair enough!!
LTCaptain, my argument is... when buyers have no obligation to buy rights why would a shorter be forced to do that. Its very new to me but I think we can learn from the experienced.
I was wondering what will be happening with short positions here due to RI price drop and issuance. I think they have to pay RI price for every 2 stocks they own (2:3)
Any idea!!
"Stocks move up and down because they love candles"
Unknown
WhataMESS. Loom behind.. how many of your replies has been reported and deleted in this forum including you nameshaming my broker and ther CEO and abusing. I think you need to learn from your mistakes dear.
JMAX, well its difficult to determine exactly how much of a correction is on the cards but I think 1150 levels can be touched i.e. around 10-12% from where we are now. But as I said earlier those prices will be very lucrative for big boys to pile up some more. Recently "First eagle Investment management" offloaded some shares worth approx. 300k on 23-07-2020 making their overall ownership to 5%. I think there will be some more profit taking here before it goes further up. But for a long term, its definitely a wealth creator.
There has to be a rotation at some point of time. At this moment, growth is overpowering value but this is a normal stock market behaviour especially during uncertain times. But I think now a shift seems to be approaching and it will also cause a downward pressure for FRES. Interestingly, FRES is the only stock amongst the entire FTSE-100 companies which has its price 65% above its 200d MA as of today making it a potential outlier. The next closest is Ocado whose is trading 42% above its 200d MA. And combine it with other technical indicators which I have mentioned before, there is a very high probability of a deep correction here.
Carvegyber, there is a clear divergence which can be realized through daily chart 14 day RSI. Anyhow apart from this there are plenty other indicators which are suggesting a short term downward move. I can be wrong but the probability seems high. Lets see whats in the store in the coming days. Happy trading.