Investors in Almonty Industries are facing a perplexing situation as the stock sends wildly contradictory messages. Market experts are dramatically raising their price targets, while technical chart indicators flash warning signs of a potential sharp correction. This divergence leaves market participants questioning whether they are witnessing the precursor to a decline or a rare buying opportunity.
Analyst Optimism Clashes with Technical Weakness
In a move that defies the current negative price trend, the analysts at Sphene Capital have issued a significant update. They have drastically increased their long-term price projection, placing a “Buy” rating on the shares.
The revised assessment outlines a bullish case:
- New Price Target: 13.50 CAD
- Previous Price Target: 8.40 CAD
- Upside Potential: Approximately 60 percent from current levels
This optimistic stance is echoed by DA Davidson, which maintains its “Strong Buy” recommendation. The fundamental outlook from these experts stands in stark contrast to the stock’s recent technical performance.
Chart Analysis Sounds a Warning
Recent trading activity has unsettled the market. Over the past 24 hours, the share price officially slipped below the 50-day moving average of 9.44 CAD. This breach is widely considered a classic cautionary signal for medium-term momentum. Trading volume was notably high, with roughly 5.48 million shares changing hands as the price plunged to a low of 7.98 CAD.
Should investors sell immediately? Or is it worth buying Almonty?
Although a minor recovery has since occurred, with shares currently trading around 8.48 CAD, the chart pattern has been damaged. The break below key psychological levels suggests that selling pressure is, for the moment, outweighing buyer interest. Technical analysts often interpret this type of “bearish crossover” as a clear indicator of further potential losses or a protracted period of consolidation.
Operational Milestones Fueling Volatility
The fuel for this analyst optimism—and a likely contributor to the heightened volatility—is the company’s operational timeline for 2025 and 2026. Almonty is on the verge of commissioning its Sangdong mine in South Korea, scheduled for later this year. Successful activation would instantly transform the company into one of the most significant tungsten producers outside of China.
Adding a second growth engine, the acquisition of the Gentung Browns Lake project in the United States provides additional long-term potential. The market appears to have not yet fully priced in the company’s transition from a developer to a multi-asset producer. The recent analyst upgrades reflect the expectation that Almonty’s cash flow profile will change dramatically once Sangdong becomes fully operational.
Navigating this stock requires careful consideration. The technical picture advises caution, while the fundamental data points to a potentially substantial undervaluation. The coming days will be critical in determining whether the 8.00 CAD level can serve as a reliable support floor.
Ad
Almonty Stock: Buy or Sell?! New Almonty Analysis from November 27 delivers the answer:
The latest Almonty figures speak for themselves: Urgent action needed for Almonty investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from November 27.
Almonty: Buy or sell? Read more here...
