SSW One of the shares from today's report.
Sibanye Stillwater (SSW) | As discussed in Monday’s note, trading at the rising trend line resistance. The 3-day RSI is 92 while the share is extended well above it’s 8/21-EMA range. Also note the share trading at the upper boundary (2x) the 20-day linear regression channel.
0A56 trade ideas
Greenwashing Can Only Take You So FarSibanye-Stillwater follows a number of broader correlations. Platinum, palladium, gold, gold miners, the SA40. But until now nobody has mentioned that--because of its earnings misses lately-- perhaps the market is pricing in SSW's overextended battery metals M&A strategy. Will they ever make money on their new lithium acquisitions? Is SSW even making money in its catalytic converter recycling segment? It is the largest such company in the world, so it's worth asking. In the short term macro, global electric vehicle production is going to slow; I don't see how SSW will profit from this in the near term.
Now to the technicals of my bearish bet. Breakdown from a Rising Wedge has formed into a Head & Shoulders with the second shoulder rejecting back under the 200 Exponential Moving Average after a notable increase in selling volume. Panning out on the longer term, this is a rejection from previous support of the topping structure. I do not believe that this is a breakout from an Inverse H&S nor a base breakout + retest move. I believe SSW has topped and will continue to move lower.
SSW - 1D - SIBANYESibanye has broken out of a rounding bottom pattern, and i have already entered the long position. If first target of R52 is reached it will confirm a larger rounding bottom and breakout will target R55 which will be my second target. Word of warning a rising wedge has formed, and a break to the bottom can be used as a stop. I would still hold and wait it out to the upside.
SSW UNDERVALUEDWITH THE RESULTS PRESENTAION BEHIND THEM , CLEARLY A IMPROVED HALF IS AWAITING THE COMPANY AND WITH METTAL PRICES REMAINING STEADY , THERE MUST BE UPSIDE .
SSW IS DIVERSDIFIED AND THE BATTRY METALS GROWTH IS INTRESTING
Debt Level: SSW has more cash than its total debt.
Reducing Debt: SSW's debt to equity ratio has reduced from 124.2% to 23.4% over the past 5 years.
Debt Coverage: SSW's debt is well covered by operating cash flow (178.3%).
Interest Coverage: SSW's interest payments on its debt are well covered by EBIT (43.8x coverage).
SSW is good value based on its Price-To-Earnings Ratio (5.6x
ps DO YOUR OWN RESEARCH THIS IS MY VIEW
SSW - Rounding bottomSibanye has formed a bullish rounding bottom which, if follows through, targets around the R55 mark. Initially though, first resistance is encountered at R52.09. Alternate scenario could also be a potential cup & handle being formed, which entails a slight pullback before the next leg up.
Short on SSWJSE:SSW is looking good for a short position based off of our momentum indicators. The stochastic, MACD and two EMA's have all crossed downwards. If triggered, we are looking for a target at around the 3580 level which is a strong support level making the target area a bigger possibility.
SIBANYE - Resistance ZoneThe stock has rallied together with the other miners on our market and is now at the top of the broadening formation.
A close above R48 could see some further strength towards 200dma and swing high at R52 .
Alternatively, below R45.50 we likely fade back towards the rising 20ema.
SSW - MonthlyHow I'm seeing it: I tweeted on this name in December, also referring to the monthly chart. The price has now shifted below the 2016 demand supply zone and toward the mid point of the LT upward trending channel. ST = possible rebound as the share has developed a positive divergence. As always, your time horizon matters most.
SIBANYE - Monthly Observation The chart in currently in a solid down trend since hitting a high of R77.60 in March 2022
A support zone has been reached R35-R40 and is likely to provide some temporary relief or possibly be a turning point but much needs to be done to break through overhead supply.
R45 first likely resistance area.
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
A Positive Outlook Sibanye-StillwaterThe statistics are between
$15.00 - $17.70 (1 Year)
It looks like it will get back to the Resistance again of $20 (2027)
If their Gold Projects keep on growing and prices keep rising,
it would be possible to have a break out in the Future (5 - 10 Years)
Sibanye-Stillwater has two advanced gold projects underway in South Africa –
Burnstone, a developmental stage project,
and the Southern Free State (SOFS) project an exploration project.
On 31 December 2021, these projects had a combined gold Mineral Reserve of 2.6Moz
and combined gold resources of 16.0Moz
Disclaimer:
Just my Idea! Find your Trading Ideas and learn and study more!