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

Simon Mugo Simon Mugo
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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.

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
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading

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