Perfect time to buy this FTSE 100 play?

TL;DR

Fresnillo, a silver miner, has experienced ups and downs in its stock price. However, with silver prices poised for a major advance, the stock may see a rally in the near future.

Transcript

hello it's john burford with chart of the week for monday the 1st of august and today i am covering a very old friend i covered it on and off for the last few years the silver miner ftse 100 member fresnillo or freneo i'll call it fresnello and uh you can see that uh it's been on a pretty much a roller coaster for a lot of its life um this is the u... Read More

Key Insights

• 🚄 The stock price of Fresnillo has experienced significant volatility, with periods of high prices during silver bull markets and periods of low prices during bear markets for precious metals.
• 😘 A lack of interest in silver and precious metals from investors and traders has resulted in minimal activity and low stock prices for Fresnillo in recent years.
• 🥈 The cessation of coverage and headlines for silver and Fresnillo can be an indicator of a potential reawakening of interest in the market.
• 👋 Chart patterns, such as the ABC corrective wave pattern, can provide insights into potential future movements of the stock price.
• 🥈 The long-term silver chart highlights a significant support area near the Fibonacci 62% level, suggesting a potential major advance for silver prices.
• 🍉 Short-term analysis of the silver market indicates a potential rally, with a target price near $30.
• 💪 Despite the possibility of a short-term dip, a strong advance could indicate a bullish trend for Fresnillo's stock.

Questions & Answers

Q: Why has there been little activity and low stock prices for Fresnillo in recent years?

Investors and traders have shown less interest in precious metals, including silver, leading to a lack of activity and lower stock prices for Fresnillo.

Q: What signposts indicate a possible reawakening of interest in silver and Fresnillo's stock?

One signpost is when silver and Fresnillo stop appearing in the headlines for an extended period, as it suggests a potential reawakening of interest from investors and traders.

Q: Are there any specific chart patterns that indicate a potential rally for Fresnillo's stock?

The chart shows an ABC corrective wave pattern, suggesting that the stock has completed a corrective phase. A potential rally may occur if there is a breakout above the resistance level indicated by the tramline.

Q: How is the stock price of Fresnillo related to the price of silver?

The stock price of Fresnillo is closely tied to the price of silver as it is a silver mining company. As the price of silver increases, the stock price of Fresnillo typically follows suit.

Summary & Key Takeaways

• Fresnillo, a member of the FTSE 100, has historically experienced significant volatility in its stock price due to fluctuations in silver prices.

• Recent years have seen a lack of interest in precious metals, including silver, leading to minimal activity and low stock prices for Fresnillo.

• However, a possible reawakening of interest in silver is expected, with indications of a potential rally in the near future.