Shares of Bushveld Minerals Limited (LON: BMN) are stuck in a sideways trading range since early February after falling from their January highs. When will the shares break out?
The Vanadium mining company said that it was on track to mine more vanadium quantities this year than last year, with the majority of the increased production happening in H1 2021.
The rising global vanadium prices should also favour the company, yet its shares are still stuck in a wide range, which indicates that the shares are forming a balancing zone.
From a technical standpoint, a balancing zone usually indicates that the current trend might be about to change, or it could continue.
Therefore, in the Bushveld Minerals case, the structure indicates that the miner’s shares could break out and start another rally phase, but only time will tell.
Despite the trusted accuracy of technical analysis, the market conditions behind any two similar patterns are never the same, mainly because the market participants constantly change.
Hence, no two similar chart patterns will unfold similarly on two separate occasions. We could easily see the price break out at the lower end of the range and head lower, extending the current bearish trend.
Bushveld shares are currently trading in the middle of the range; hence, it is difficult to predict whether they will break out to the upside or downside. A solid fundamental trigger could push the shares higher or lower, depending on whether it is a positive or negative development.
To read about the miner’s positive fundamentals, check out the article linked below.
Bushveld Minerals share price.
Bushveld Minerals shares are stuck in a sideways trading range since early February; when will they break out?
Should you invest in Bushveld Minerals shares? Bushveld Minerals shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Bushveld Minerals shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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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