Post by
Starsearcher80 on Jun 23, 2022 10:58am
POINT OF INFLECTION, AND UPSIDE
This 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.
Comment by
petrojell on Jun 23, 2022 6:10pm
..' This creates an imbalance, which can last for a couple of days '.. couple of days ???., China is not buying .. try ' an imbalance ' till end of 1st quater 2023..
Comment by
Starsearcher80 on Jun 23, 2022 7:46pm
Petrojell, you vastly overstate China. This article is about 6 weeks old now, but absolutely relevant. CLICK HERE to read.
Comment by
Tweedlede on Jun 23, 2022 8:40pm
RSI was kissing oversold today for sure. Last time this low was the bottom of March 2020. I'm not sure if there's much technically to say this is a good time to buy for a trade. Being oversold isn't Bullish. It's the whim of sentiment and spot here.