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Alien Metals Shares Are Down 55%, Should You Buy?

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Simon Mugo

Shares of Alien Metals Ltd (LON: UFO) are down over 55% from their October 19th high of 3.18p despite the lack of negative releases from the company in what can be best described as a major selloff.

The mining company’s shares had rallied higher between 12th and 19th October creating a parabolic shape on their price chart, which is usually followed by a major selloff, once the top is reached, which happened on the 19th.

Alien Metals announced the signing of an earn-in agreement on the Donovan 2 Copper and Gold Project with Capstone Mining Corp on 23rd October, which resulted in a bullish daily candle before the downtrend resumed.

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The stock kept falling despite the company being awarded an exploration license in northern Greenland, surrounding the world-class Citronen zinc-lead project owned by Ironbark Zinc Ltd.

Citronen hosts a resource in excess of 13 billion pounds of contained zinc and lead metal and is one of the largest undeveloped zinc-lead projects globally.

For traders looking to buy the stock, I would wait until the current downtrend is over before buying.*

*This is not investment advice.

Alien Metals share price

Tradingview chart of Alien Metals share price 29102020

Alien Metals shares today fell 12% to trade at 1.32p having dropped from yesterday’s closing price of 1.50p.

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Simon Mugo
Simon Mugo
Contributor

Simon ist Autor und Analyst für den Bereich Finanzwesen und blickt auf über sechs Jahre professionelle Erfahrung als Trader zurück. Er absolvierte einen Bachelor in Mathematik und Informatik und hat eine Leidenschaft für die Finanzmärkte. Simon handelt FX, Rohstoffe und Aktien. Er konzentriert sich auf Price Action Trading.