The technicals here are straightforward - there was a double head top in Jan, followed by a failure to hold the crucial 60c support (where that astute trader LD sold) and its been downhill from there. If one looks at the yearly chart on the right, it shows that other than a big volume spike in March and July, the volume has progressively diminished as the big players have transferred to higher quality stocks such as NST, SAR, DCN, GOR etc. which are all up by 50-100% from 2017 lows.
Currently, there's a random walk pattern around the base formation of 33c. Judging by the market depth where a massive amount of sellers at 33.5c implies that the redistribution process is nearing a crescendo. Its hard to know whether these sellers are individuals or insto's but the process will complete before years end.
Nordesmic is right in saying that SLR now is a pure fundamental play, and technical analysis, especially based on imaginary patterns is unlikely to render a useful strategy.
SLR had a greater MC than NST in 2012, but now NST has a MC almost x30 SLR's ... oh dear oh dear.
The gold market has split into 2 divisions - A grade with NST DCN SAR, and nere do well which includes SLR and ALK that, despite being financially sound, their MC is too small for institutions to be bothered about.
It's like a poverty trap. The fact that the A grade stocks SP's are so buoyant implies a belief in the continuity of the gold price strength and profitability by the sophisticated part of the investment community.
A good 2nd quarter report, will only enhance SLR extraordinary value for money, and make a SP rebound likely, especially if some corporate vulture seizes the moment. Imagine SLR + BRB .... OMG what a portfolio.
Just look at the recent price action with MGV (up 30% since recent upgraded analysis report) and BRB with a similar story .... its not hard to imagine a 30% bounce in the SLR SP with any positive report or corporate action, as portended by the latest recruitment of a specialist corporate development executive.
SLR was pulled out of the quicksand by Cool Hand, and he continues to dominate the strategy and day to day running of the company, so LD and other passengers occupying NED sinecures should not be still coloring peoples view of SLR.
Merry Xmas & NY .... and hold your SLR .... things can only (and should) get better.
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