Premium Resources shares jump on Botswana copper-nickel project initial resource
The resource estimate outlines 44.2 million inferred tonnes grading 0.3% copper and 0.24% nickel.
The last time we analyzed copper, we were buying at $3.75, anticipating an upside rally to the $4 area. Next day, we were stopped out with a few cents loss, and price has dropped recently to as low as the $3.47 area. Based on the speed of the decline and the heaviest volume along the way down, copper should drop even further, or so one might think.
Past history on a chart is important, but the most important part of all is the present tense developing market activity because it is the culmination of all previous efforts. We take another look at what the market is saying about where it may be headed.
The ultimate question to always ask is, “Why?” Why did the rally/decline stop here? Why was the range so wide/short? Why was volume so heavy/light? After the “Why?” question would be “Who? The latter helps explain the former.
As in life, everything in the markets happens for a reason. Let’s see if we can “reason” what is going on
