Giga Metals Corp (GIGGF)

[ThSeeker]

GIL comment on nickel:

Nickel

As you can see from the attached charts, this pullback in nickel is normal as it is still up over 40%in the last 12 months, now trading around $7.60. On the other hand, look at the plummeting levels of LME Warehouse stocks, which just dipped below 100k tonnes! Perhaps this tight of supply at LME stocks has occurred before, but this is the most extreme decline/level that I've seen since following nickel.

Check this out from Reuters, which was news on Tuesday regarding Monday's big session decline:



"The most-traded nickel contract on the Shanghai Futures Exchange (ShFE) fell as much as 3.8% to 132,480 yuan ($18,730.91) a tonne and was down 3.4% at the close.

“The fireworks were supplied very late in the day... taking the price from $17,375 to $16,500 in less than five minutes,” said Malcolm Freeman of Kingdom Futures, referring to LME nickel’s sharp drop on Monday.

“One way or the other, something does not seem quite right and you would hope the LME is taking a close look at what is going on in the nickel market as it is certainly not reflecting what is happening in the physical market.”



Would be buyers of either straight supply, or more likely short sellers looking to cover, are panicking! They made a run to knock the market down as much as possible in the last 5 minutes, which is not something a normal seller would do. The writing is on the wall, nickel is going a lot higher! In the very near term it could see more of a pullback to the high $6's and still be well intact bullishly.



Personally, I'm focused on 2020, which is where I think we see the BIG score in our Giga Metals (GIGA/HNCKF) investment. Even though the short term could prove interesting too, as CEO Mark Jarvis starts a 5 week investor roadshow today in NYC! This doesn't mean the stock is guaranteed to fly, but it does increase the odds that a big pop could occur in the next few weeks. Mainly because I feel strongly that at this time, in this environment, savvy investors will respond to this story and take positions! They just need to hear the story, or have a refresher in front of them and I'm expecting a good response from the roadshow.



All Mark needs to do is hook in one large broker and a medium sized fund and they would take this up to .60 easily. If nickel goes to $6.50 while he's pitching, perhaps we'll need more time consolidating first. But if we stay in the $7-8 range, I feel the risk is being on the sidelines. If nickel recovers quickly from the tactics to knock it down, and trades back well above $8, GIGA should climb quite nicely over the next few weeks.