Iluka is a $4.5 billion mineral sands company that also has a position in rare earths. “Commodities pricing continues to rise and the recent opening up of China is only going to add momentum to these prices,” Michael said. “At ILU’s recent quarterly result, it was able to show large improvements in production volumes, and the outlook for these materials continues to remain positive. “The share price chart (below) is also indicating some future upside from here.
“Since late August, ILU formed a clear line of resistance near $10.70 (the horizontal blue line in the below chart).
“Then in the past couple of days, it managed to break above this major level (circled in chart).
“This should now lead to a rally back up to levels over $12.
“Any pullbacks from here would need to stay above the lows near $9.50,” Michael said.
Iluka Resources (ILU)
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