Shares of MQG lost over 2% for the week as internal momentum indicators are now rolling over into negative territory.
In addition to the negative technical picture, MQG faces a major class action suit over allegations some of its investment advisers artificially inflated the price of a small mining company before a sudden collapse wiped out many of its investors.
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According to an article in the Sydney Morning Herald, the investment bank’s brokers are accused of deliberately “ramping” stock in Cleveland Mining Group: a Brazilian iron-ore mine project with a potential value of $34 billion that turned out to be a “worthless patch of jungle.”
Initial price support can be found at the June 8th low of $86.05. A break of that level could see downside range extension to the February 9th low of $82.30.
Macquarie Group (MQG)
