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
Eurasia Mining plc (LON: EUA) shares fell 40% from their September highs as sellers took over and drove the shares lower.
The selloff was a classic pullback following the parabolic rally after the mining company reported that it had transformed its West Kytlim mine operations and launched three new washing plants.
However, the selloff seems to have ended given the bounce in Eurasia’s share price in late September and the ensuring sideways trading action that is currently acting as a balancing zone.
The question on most investors minds is, what’s next for Eurasia Mining? While we cannot predict what will happen in future with 100% certainty, we can look at several key factors and discuss a few likely scenarios.
Firstly, Eurasia Mining’s fundamentals are pretty solid after the transformation of its West Kytlim operations, leading to a pronounced increase in its output.
The platinum group metals (PGM) mining company is also well-positioned to profit from the expected high demand for PGM’s such as palladium, rhodium, iridium, platinum and gold.
Therefore, the odds favour a rally over a downtrend based on fundamental factors.
On the other hand, the technical picture painted by the company’s share price chart indicates that the momentum behind the selloff has eased off, and right now, the shares are in a sideways range.
We could get a break lower or higher once the consolidation is over, but the current odds favour an uptrend over a downtrend.
The last major announcement from Eurasia was the recent share subscription, where it raised $15 million after selling 41.6 million shares at 26p each to fund its Rosgeo JV projects.
*This is not investment advice.
Eurasia Mining share price.
Eurasia Mining shares fell 40% from their September high of 39.25p to their current price of 23.55p.
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