Sirius Minerals shares at critical point - By Alistair Strang | Wed, 21st December 2016 - 09:55
Sirius Minerals (LSE:SXX)
To deal with Sirius (SXX) first, our prior outlook speculated on the dangers of closure below the immediate uptrend. Essentially, closure below 19.5p risked opening a shaft with an initial target at 12.7p and secondary, if broken, at a bouncy bottom of 8p.
Painfully, the share price indeed has taken steps with thus far, weakness reaching 17.25p. It's now been a month and our grotty prediction of 12.7p making a guest appearance hasn't happened.
The situation now feels like anything below 17.25p should provoke 15.25p and, hopefully, a bounce if the share is exhibiting symptoms of inherent strength.
A movement such as this would not endanger the uptrend since 2015 as, at time of writing, it's at roughly 13.889p.
However, with a break of the red line on the chart, it becomes highly probable the share price intends to explore the chasm with 8p at the bottom.
On the bright side, we've given the price a month and it has made no real effort to get to our prior 12.7p. If strength is indeed lurking just below the surface, what's needed to inject of dose of optimism?
On Tuesday, the share was "trading" around the 18.5p mark and need only better 19.5p to suggest a change in direction. A triggering movement like this should prove capable of bringing up a cycle toward 20.5p, maybe even 22.75p.
Achieving such a level would be especially interesting as, if bettered, further oomph toward 26p and a future challenge of the blue downtrend can be expected. Only with closure above 'blue' will we be impressed as it shall require another stir of the tea leaves to figure out the next phase of its future.