Merafe showing downside to test R1.00 again read fundamentals
M Formation formed on the daily
and we are just waiting for the price to break below the neckline.
21>7- Bearish
Price <200 - Bearish
RSI <50 lower highs
Target R1.08
CONCERNS:
Many resource companies are showing downside to come. It seems like smart money knows something the public doesn't. This corresponds to the strengthening dollar. Ever since the US dollar started strengthening in February 2023, Resources markets have been showing volatility with no conviction of upside.
Economically speaking for Merafe, the price of ferrochrome (Which is used in the production of stainless steel) is denominated in US dollars, which means that changes in the value of the dollar can impact the price of ferrochrome.
This is because a stronger dollar makes it more expensive for buyers in other countries to purchase ferrochrome, as they need to exchange their own currency for US dollars in order to make the purchase.
This can lead to a decrease in demand for ferrochrome, which can put downward pressure on the price.
Additionally, a stronger dollar can make it less profitable for ferrochrome producers in countries with weaker currencies to sell their products on the global market. This can lead to a drop in supply of ferrochrome, which can also put downward pressure on the price.
and we are just waiting for the price to break below the neckline.
21>7- Bearish
Price <200 - Bearish
RSI <50 lower highs
Target R1.08
CONCERNS:
Many resource companies are showing downside to come. It seems like smart money knows something the public doesn't. This corresponds to the strengthening dollar. Ever since the US dollar started strengthening in February 2023, Resources markets have been showing volatility with no conviction of upside.
Economically speaking for Merafe, the price of ferrochrome (Which is used in the production of stainless steel) is denominated in US dollars, which means that changes in the value of the dollar can impact the price of ferrochrome.
This is because a stronger dollar makes it more expensive for buyers in other countries to purchase ferrochrome, as they need to exchange their own currency for US dollars in order to make the purchase.
This can lead to a decrease in demand for ferrochrome, which can put downward pressure on the price.
Additionally, a stronger dollar can make it less profitable for ferrochrome producers in countries with weaker currencies to sell their products on the global market. This can lead to a drop in supply of ferrochrome, which can also put downward pressure on the price.
✅ Facebook:
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
facebook.com/groups/matitrader
🌐Website:
timonandmati.com
𝕏 (Formerly Twitter):
twitter.com/timonr
Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)
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