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Tuesday, April 24, 2018

PMetal: Down due to Weaker Aluminium Prices

PMetal dropped 35 sen to RM4.75 as at 10.00am. The sharp drop in PMetal followed equally sharp decline in aluminium prices overnight after the US Government eased sanction on Rusal, the Russian company that's a big exporter of aluminium (here).


Chart 1: PMetal's daily chart as at April 24, 2018_9.30am (Source: Shareinvestor.com)


Chart 2: Aluminium's daily chart as at April 23, 2018 (Source: investing.com)

With the removal of this positive stimulant to the share price of PMetal, it is likely that the latter will revert to the prior downtrend. If that's the case, PMetal is likely to drift down to the horizontal line at RM4.50 or the psychological RM4.00 mark or the recent low of RM3.80. In view of this, you should be careful in trading this stock in the short-term.

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