Member Since 8 December 2015
Last Seen: 3 Mar '20
Posted on 31 January 2018, 11:48 AM

Sirius Minerals plc an avoid as the bearishness is expected to continue

Topics: Analysis
Other Insights on Related Shares: SXX.L

Sirius Minerals Plc shall be avoided for the time being. The stock finished trading on the London stock exchange at 23.0p on 17th January, down by 0.40% compared to the previous close. The stock has been non stop falling for the past few weeks and it seems that the correction shall continue for the coming days as well. In terms of technical analysis or charting, the stock has been trading firmly on the downward trend line which further confirms the further bearish sentiment of the stock. It has been constantly forming lower highs and higher lows and we don’t see any signs of consolidation soon. Currently, the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 23.0p, 24.4p and 25.2p respectively. The momentum oscillator ie macd also indicates towards the bearishness of the stock. The immediate support and resistance is placed at 22.0p and 25.0p respectively. However, any breakdown below 20.0p may push the stock even lower.  Therefore, traders or investors shall be adviced to avoid initiating any fresh long positions in the stock.

The company lately announced the quarterly update on 12th January 2018. As per the update, the project remains on track to deliver the first polyhalite and commercial production on time and on budget. However, current diaphragm walling activities are approximately two months behind the schedule. However, the review of 2017 milestones demonstrates good progres

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