The Eurasia Mining share price is trading 0.4% lower on the day. While still within the trading range of the last two months, the stock has now dipped towards levels where the range’s floor is now at risk. The Eurasia Mining share price was caught up in the sanctions saga that followed the onset of the Russia-Ukraine war on 24 February 2022.
While the company denied that some of its shareholders were affected by the sanctions, the stock took a hefty beating as investors rushed through the door to protect their holdings. Trading in Eurasia Mining’s shares was suspended for a week but resumed trading on 18 May.
Since then, the downward spiral has continued, save for a brief rally in early July. This week has brought two downside violations that the bears did not sustain. But the two-day downside push against the 4.980 support could push the Eurasia Mining share price lower if the bulls fail to defend this support.
The price action continues to trade within the range. This range is bordered by the 4.980 support and the 5.975 resistance, which acts as the ceiling. A breakdown of the vulnerable 4.980 floor (8-30 August lows) allows the bears access to the 4.040 pivot formed by a prior low of 4 July 2022.
The double trough of 7 January 2020 and 30 January 2020 at 3.205 forms the next available target to the south. A further decline below this level raises the chances of 2.500 (11 November 2019 and 17 December 2019) becoming a new harvest point for the bears. The late October 2019 lows at 2.000 form psychological support.
The contrarian view will see the bulls being able to stage a bounce from the 4.980 support. A bounce that clears the 19 August to 5 September highs at 5.750 will target the 5.975 range ceiling as the first touchdown point. Above this 18 August peak, the bulls will have 6.480 to contend with, being a former high of 29 July and 2 August. The 17-27 June 2022 highs at 7.465 and the 8.000 psychological price mark (20 April low and 16 June high) are the additional harvest points for the bulls.
This post was last modified on Sep 06, 2022, 19:02 BST 19:02