Rare gem: long on this belgian stock.Hello, I spotted an inconsistence in "the force". Some stocks that have gone down because of the US stock market being bearish in novmber. The news were positive, the company was supposed to be bullish in my opinion, but the general fear due to us tech stocks being way overvalued has forced this company in particular to fall. I am expecting a severe bounce soon.
Umicore is a belgian multinational materials technology and recycling group, in particular they specialize in zinc and advanced products, such as batteries for electric vehicles.
Some technical facts:
- This company has a market cap of 9 billion euros.
- We visited the liquidity pool during the day and rejected that price, the daily candle closed in a hammer.
- We can see bullish divergence on the oscillators, here I am showing macd and rsi because they look good.
- It has a volume of 800.000 shares daily on average, no problem getting filled big orders (for retail at least).
I just want add the cci, looks good too :)
The US stock market also gapped up, and is not looking like it will crash immediatly and drive everything down.
The news are good:
"Insight: Stung by Asian dominance, Germany pours cash into EV battery ventures" - November 9, at the start of the downtrend.
"Germany has earmarked 1 billion euros ($1.2 billion) to support a consortium looking to produce electric car battery cells and plans to fund a research facility to develop next-generation solid-state batteries, three sources told Reuters." - November 9.
"About 500,000 electric vehicles (EVs) were sold globally in 2016, a figure that is expected to jump sevenfold by 2022, according to the U.S. Energy Information Administration." - November 16.
"German chemicals giant BASF (BASFn.DE) is betting on a new recipe for electric car batteries which stretches the time between charges while cutting dependence on nickel to help shave costs and grab more of a growing market." - November 23.
Same boat as this other company I was watching:
Actually all the companies I had my eye on are highly correlated... (while all stocks in the world are "only" moderatly correlated) Probably all move for the same reasons. Interesting area for sure.
These companies are the future, the news is good... I wonder how wise would investing in those be...
But for the shorter term (next couple of weeks) here are my conclusions:
Umicore price SHOULD have gone up. So I believe the news did not get priced in yet (because of global economy/us tech stocks), better, the price actually went below the previous low (unlike BASF) and the potential bounce is even bigger. And now we are getting a hammer candle? Count me in!
