POINT OF INFLECTION, AND UPSIDEThis morning's trading in the stock is interesting. There was the morning sell-off, which was just a hangover from yesterday. That was to be expected. But since then, there looks to be a point of inflection where the price of the stock is holding and even slightly increasing (off the intraday low) even though the spot price is continuing to decline.
So what to make of this?? The psychology here is always fascinating. The price of copper, and resulting share price of IVN has dropped, and shockingly so. What you get on one side, is raw emotional sellers, but on the other side, you get buyers who are "scared" to jump in. This creates an imbalance, which can last for a couple of days, but when the bottom is in, it is totally exploitable and profitable.
"Catch a falling knife" is NEVER a fun game to play, and the risk/reward of trying to do it is questionable. But if the price of the metal is now oversold, as is the stock, looking for the clues that things are firming up is worth doing.
Personally, I entered the stock with the hope of a longer term investment. I'm still aiming for that, but I've had to work hard the past few days trading it where possible to lower the average cost. This has included blowing it out, circling around at lower prices, flipping intraday moves, all the while cursing the drop. I've still got a ways to go to get on side, and today's purchases should help a lot with that. Having to work that hard though....ok, back to the cursing.
This stock imho now shows clear signs of being oversold. Do what you can to put the emotions aside...which is tough. The opportunity is now there.