Technical Analysis Snap: Fresnillo loses its shine

17th Aug 2009 15:47

Since the end of 2008 one of the star performers in the FTSE100 has been Fresnillo. In figures released on Monday the silver miner saw revenue slide in the first half of 2009 by 10.7% from a year earlier to $378.9m, as the realised silver price over the period dropped 21.9% to $13.92. Earnings before interest, tax, depreciation and amortisation eased 4.1% to $203.4m. To put in perspective the share price has gone from a low of 93p, late last year to June peaks at 741p. It is now approaching trend line support from the December lows at 503.50p, having broken below its 50 day moving average support. There should also be support around the July lows around 438p. With gradually waning momentum and precious metal prices currently slipping back, the share price really needs to recover above the July and August highs, around 663p to stabilise.With silver slipping back towards trend line support from the October lows around $13.10 the pressure could be on the downside in the short term.For periodic TA updates follow me on TwitterAlso read my Investors Guide to Technical Analysis and Level 2