Eurasia Mining share price has been in a consolidation phase in the past few days. The stock is trading at 7p, which is about 85% below the all-time high of 45.8p. This drop brings the company’s total market cap to about 200 million pounds. So, what next for the EUA share price?
Eurasia Mining is a small-cap mining and exploration company that is listed on the London Stock Exchange (LSE). It explores and mines products like gold, platinum, rhodium, and iridium. The company’s main operations are in Russia, which explains why the stock has been on a downward trend in the past few months.
The EUA share price has also retreated after the prices of its key commodities have declined in the past few months. For example, gold has dropped from the year-to-date high of over $2,000 to about $1,823. This decline happened even as inflation keeps rising around the world. Moreover, the chances of a global recession has also contributed to a decline in PGM prices.
A potential catalyst for the Eurasia share price is that insiders remain deeply invested in the company despite the sell-off. This could be a sign that they are optimistic about the company’s growth prospects amid the rising challenges.
EUA share price forecast
The daily chart shows that the Eurasia stock price has been in a bearish trend in the past few months. The stock is approaching the key support level at 5.60p, which was its lowest level in March this year. In addition, it remains below the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has moved sideways.
Therefore, there is a likelihood that the EUA stock price will have a bearish breakout in the coming days as risks of a recession rise. If this happens, the next key support level to watch will be at 5p, which is about 25% below the current level. A move above the resistance point at 8p will invalidate the bearish view.