FeV - BUY SIGNAL FeV price $23.63 (+
.63)
First time that the FeV price has emerged from oversold (and deeply oversold) territory since May 2011. RSI now registers at 36.41 having bottomed out at an RSI of only 1 in Dec 2011. I note with enthusiasm that on each of the previous 11 occasions from 2004 to date that the FeV price has emerged from oversold territory (denoted by RSI < 25), the FeV price has subsequently rallied an average of 96% to the next peak.
Stripping out the 2004/5 & 2008 ‘anomalous’ price spikes (+545% and +150% trough to peak respectively), still leaves us with an average expected rally (under more ‘normal’ market conditions) of 40%.
This could get very interesting indeed…if this (expected) FeV price increase materialises AND we get the news releases we’ve been expecting on Maracas (release of final debt financing facility, and increased (doubling of?) Maracas resource from 2011 drill program), I could very easily see LGO doubling in price over the next 3 months…AND we all know that we’ve got plenty more news to look forward to as regards LGO’s other properties:-
Currais Novos - Full production, and increase to Tungsten resource from adjacent property acquisitions –> increased production & mine life
Northern Dancer - DFS and possible JV partner
Campo Alegre - Targeting 1.5bn tonnes iron ore (50% grade) & TiO2 (20%) resource this year.
I think we may very soon be bidding farewell to the 20’s for good ladies and gentlemen!
All the best,
E17