Dominic Picarda’s Technical Take
Kazakhmys - Short opportunity Sooner or later I reckon the UK listed mining industry is going to stage a terrific rally. It is already very cheap by historic standards, and investors will realise this once they see that the economic outlook isn’t as disastrous as they currently believe. However, I never like to jump the gun in these situations. It’s the current trend that matters most to me as a short-term trader, and the trend in Kazakhmys is firmly downwards for now.
CHART - KAZAKHMYS What is more, there are few signs of a bottom forming in the price of this copper mining giant. Despite bouncing sharply from the 569p low in September, it has since twice failed around 800p. However, unlike certain other miners, it is not horrendously oversold on any timeframe. A retest of that 569p low looks probable. I’d short around the 13-day EMA.
December 2012
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