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