MC Mining Limited

MC Mining Limited (LON: MCM) is an FTSE AIM All-Share listed coal producer and mine developer.

 As per our previous recommendation on MCM as on 18 August 2022, a ‘Speculative Buy’ recommendation was given on the stock at GBX 13.50, and noted below are the details of support/ resistance provided in our previous report:

Recommendation Summary as on 18 August 2022

Rating Rationale – SELL at GBX 16.40

• Profit Booking: The company’s share price reflected a jump of ~111.61% in the past 1 month and presents a case of profit booking.
• Lower Coal Production: Run-of-mine (ROM) coal production at Uitkomst was 7% lower in Q3 FY22, compared to prior comparable period.
• Volatile Macro Scenario: Global markets under pressure to perform amidst the hawkish stance of rate hikes in order to curb inflation.
• Climate Risk: The Group’s business model exposes it to the long-term risk of Government rules and regulations.

MCM’s Daily Chart

Considering the target and resistance level achievement, current trading levels and risks associated, it is prudent to book profits at the current levels. Hence, a 'Sell' rating has been given on the stock at the current price of GBX 16.40 (as of 22 August 2022, at 11:05 AM GMT+1). 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 22 August 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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