Orica manufactures and distributes explosives and other chemicals the mining industry.
“The current strength in the mining sector should continue to lead to increased demand for Orica’s services, ‘ Michael said.
“The chart for Orica is also reflecting the potential for further upside.
“ORI had been trading sideways in a clear channel since November.
“This gave us a clear boundary to trigger a buy or a sell signal.
“A recent close above the upper blue line was the trigger to buy ORI as this now means that it should start a new uptrend. “Volumes have also been high the past few days, which is a positive sign (circled).
“A fall under $14.50 would be a bearish sign for the stock,” Michael said.
Orica (ORI)
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