If like me you’ve been trying to catch the Lonmin falling knife, you might be just about ready to throw in the towel. But you might be doing so at exactly the wrong time, just as the price has bottomed-out.
I’m not in the prediction business — especially about the future — but I think there are at least two plausible reasons to conclude that the price of Lonmin shares may now have bottomed out.
If you look at the following “big picture” chart (courtesy of InterTrader), you can see that the price of Lonmin shares is now at pretty much the same level as the low price of March 2009. This could turn out to be a technical support level; or you might simply think that “If things are no worse than they were then (and it’s a big IF) then the share price should go no lower than it did then.
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Disclaimer: this posting is for general education only; it is not trading advice.