TA ( Technical Analysis )
Support and resistance as shown: 0.355, 0.310, 0.28, 0.255, 0.225, 0.19, 0.135, 0.12
FA
Commodities sector is as good as a defensive sector as of now. We may not expect a commodities boom like old age, as current economy is more on technology driven rather than conventional business driven like energy and resources.
But on the bright side, China economy is showing sign of picking up, if it does, the huge demand from China population will spur the growth of commodities price too..and I believe price will be slowly strengthen up
At current price of 0.27, it trades at P/E about 5 - 10 (average up the yearly profit). If it were to hit the fair value price of 15, it will be 0.81 ( from P/E 5 to 15 ) or 0.4 ( from P/E 10 to 15 ). But because of commodities and resources not a favorable sectors now, it is good we use P/E 10 as fair value.. so the best potential for the price to reach P/E 10 is about 0.27 to 0.54
Support and resistance as shown: 0.355, 0.310, 0.28, 0.255, 0.225, 0.19, 0.135, 0.12
FA
Commodities sector is as good as a defensive sector as of now. We may not expect a commodities boom like old age, as current economy is more on technology driven rather than conventional business driven like energy and resources.
But on the bright side, China economy is showing sign of picking up, if it does, the huge demand from China population will spur the growth of commodities price too..and I believe price will be slowly strengthen up
At current price of 0.27, it trades at P/E about 5 - 10 (average up the yearly profit). If it were to hit the fair value price of 15, it will be 0.81 ( from P/E 5 to 15 ) or 0.4 ( from P/E 10 to 15 ). But because of commodities and resources not a favorable sectors now, it is good we use P/E 10 as fair value.. so the best potential for the price to reach P/E 10 is about 0.27 to 0.54
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| Mid to long term analysis (source : Poems Live Chart ) TA view for illustration purpose only |
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