Gold, silver as I had shared time and again in the posts, are crowded trades. As posted yesterday, that's not the reason to sell.
I have also introduced a couple of precious metals group miners during those posts. In this article, I will reintroduce one that continues to fly under the radar, $Sibanye(SBSW)$ . Sibanye Stillwater is a mining company focusing on precious metals. Its main mining products are platinum group metals and gold. Platinum group metals include palladium and platinum obviously. There are others less known ones like rhodium and iridium.
The main ones are still platinum and palladium, so the prices movement of both platinum and palladium will greatly influence the overall profitability of Sibanye.
As this is simply an introduction piece and what I do with what I perceive, I won't go into the depths of its operations. This information could easily be found in this new age AI leaning 🌍. Feel free to explore further.
I will start with what I see months ago. I believe I had shared this information months ago. Today is probably a confirmation of that information. From the chart above, I mentioned that a likely cup seems to have formed for the share price movement of Sibanye. I could have been wrong. It could just be a double top, but I was quietly confident given that the bottom of the cup was around $3. Meaning there's nowhere to go beyond that [Facepalm] [Spurting] [Tongue] . After hitting $13, the correction indeed happened. I waited patiently for the handle to form. The share price proceeds to correct to around $10. Then the rebound started, with a confirmation of uptrend around $10.60. I took up a new position when there's still a lot of uncertainty about its direction. It was with some risk, but I was confident considering its price action over those time periods. The rationale is to buy while the premium is still low. The other reason is that I need a relatively longer runway for the price to run.
So far so good... what comes next?
Sibanye just broke its previous high. According to a fast moving secondary indicator, KDJ illustrated above, this new momentum seems to have just begun. This is definitely positive for Sibanye and gives me the confidence that the uptrend is intact despite the new latest 52 weeks high. While corrections will still happen, the uptrend is unlikely to be derailed, at least for now.
The price actions of palladium above confirm my above assessment. The price of palladium has lately broken through its consolidation pattern. Although the secondary indicator, RSI, has indicated an overbought position, but that itself has also broken out of its consolidation pattern. The other secondary indicator, MACD, on the other hand supports the information that rising momentum has been confirmed.
Lastly, the price of platinum has also broken its recent high, hitting a new 52 weeks high. Same as palladium, the secondary chart on RSI shows exactly the same pattern. RSI indicates an overbought position after broken out of its consolidation pattern. Same as palladium, it only signals that platinum is just starting. This 52 weeks high signals the beginning rather than the end.
All the above charts evidence provides further confidence that Sibanye price actions are real and the cup and handle formation is confirmed. The volume over the course of 5 years for Sibanye is further validation of this trend. It has been a long time coming. If I am correct with this cup and handle formation illustrated above, its target 🎯 price is also there in the first chart, at $20.6. Why won't I need ample runway then for this run to fulfill its destiny?
About the title, yes, gold and silver are all the rages at the moment. However, that doesn't mean that they are the only market out there. If you are like me who like to explore bits and parts of the market's unknown and inefficiencies, then you are in the right place. It might seem easier to follow the crowd, but when you do, make sure you are not among the last to jump in! When we think that the party will go on forever, that's when we get caught with rugs pulling out from under our feet! [Spurting] [Facepalm]
Last word from a TA point of view. Charts could fail you. Market gives only what it wants to give. But trend won't lie. When the trend changes, the TA changes and a different market positioning is adopted accordingly.
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