The Empire Metals Ltd (LON: EEE) share price plunged 14.5% despite the lack of news from the company. The last significant announcement from the mining and resource exploration company was earlier this month when it revealed that recent geochemical mapping had uncovered giant potential copper deposits at its Pitfield project in Australia.
YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Investors cheered the announcement, which triggered a significant rally in the company’s share price leading up to today. However, the price chart below shows that each rally was followed by a significant pullback, which is typical of most parabolic rallies.
The same logic applies to today’s decline, which follows yesterday’s massive rally despite the lack of other news from the company as investors pile in following the discovery of the giant copper deposit announced earlier this month.
So, should you join the masses and buy some EEE shares? The answer depends mainly on your investment goals and timeframe. However, given the recent rally in EEE’s share price, I would wait for a deeper pullback before buying.
The company’s prospects are promising, and it is one to watch if the price falls further, making it cheaper to buy the stock.
*This is not investment advice.
Empire Metals share price.
The Empire Metals share price plunged 14.51% to trade at 1.65p, falling from Thursday’s closing price of 1.93p.