In micro-caps I've found that the volume is too little for anything meaningful to come of some TA, so instead I've gone down the fundamental approach mapping out some key moments in this developing mine and what we would see if progress is coming.
I've mapped out the last remaining options in late 2018 and 19. I don't see any price action great enough to make the next two options at 5c and 10c worth exercising,(unless a pump in lithium prices and funding secured early) but with holidays coming up slowing progress down I don't see it happening. I see this as a good thing for a current holder who won't see further dilution from past deals.
With the current falling wedge , currently closing around the expected time of a report from funding due around the end of April (from the recent investor presentation) the price will give a clear picture of what results are to be expected.
1) Funding Secured, price slowly starts to grow as news will spread shown by the green arrow after which I would expect a slight sell-off from the news followed by steady growth varying on macro factors.
2) Funding is not successful, insiders see the mine failing, selling begins from inside. (First red arrow) Followed by no news by the expected end of April further decline followed by the announcement where I see a drop to below a cent. (Un-funded, underdevelop, In an uncertain political environment)
If the support around ~.025 is broken I expect some price action around ~0.02
Besides all this, lithium prices have the strongest Beta especially with these upcoming mines relying heavily on its prices to be able to start the mine profitable and help with funding deals. I would've liked to overlay a lithium price chart but couldn't find any. So, all in all, I feel the success lies around the short to medium lithium prices.
Point to note - Having strong ties with the Zim government would suggest the connections the directors have been far-reaching, this should mean a greater chance in finding funding that is willing to take a risk.
Also I'm guessing the later options are the directors as the timing of the end of funding is just before they expire.
I've mapped out the last remaining options in late 2018 and 19. I don't see any price action great enough to make the next two options at 5c and 10c worth exercising,(unless a pump in lithium prices and funding secured early) but with holidays coming up slowing progress down I don't see it happening. I see this as a good thing for a current holder who won't see further dilution from past deals.
With the current falling wedge , currently closing around the expected time of a report from funding due around the end of April (from the recent investor presentation) the price will give a clear picture of what results are to be expected.
1) Funding Secured, price slowly starts to grow as news will spread shown by the green arrow after which I would expect a slight sell-off from the news followed by steady growth varying on macro factors.
2) Funding is not successful, insiders see the mine failing, selling begins from inside. (First red arrow) Followed by no news by the expected end of April further decline followed by the announcement where I see a drop to below a cent. (Un-funded, underdevelop, In an uncertain political environment)
If the support around ~.025 is broken I expect some price action around ~0.02
Besides all this, lithium prices have the strongest Beta especially with these upcoming mines relying heavily on its prices to be able to start the mine profitable and help with funding deals. I would've liked to overlay a lithium price chart but couldn't find any. So, all in all, I feel the success lies around the short to medium lithium prices.
Point to note - Having strong ties with the Zim government would suggest the connections the directors have been far-reaching, this should mean a greater chance in finding funding that is willing to take a risk.
Also I'm guessing the later options are the directors as the timing of the end of funding is just before they expire.