GREY:MLKKF - Post by User
Post by
24~Karaton Jul 02, 2007 2:47pm
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Post# 13026919
Chart Considerations
Chart ConsiderationsWith the continuing slide in the US Dollar, Copper has broken out today, as have the other metals, including gold. These developments can only add fuel to the fire in the already bullish molybdenum market.
Well over a year ago, there was considerable skepticism in the analyst community regarding the longer-term viability for the price of moly, some of whom called for the price to return to the $7 level. Indeed, it was at that price that ML and other emerging producers were forced to use (by the myopic analyst community) in calculating the long-term feasibility of their deposits. At the time, I pointed out the absurdity of these pessimistic observers, and stated that, on the pessimistic side, the long-term equilibrium price for moly should, at the very least, be considered to be $16.
Since that time, there is now a much wider acceptance and appreciation of molybdenum as a strategic and vital commodity. Looking at its price chart above, long-term support is now evident in the $21 - $23 range.
To all my Canadian friends who post on this board, Happy Canada Day!