IGO is a $9 billion Australian nickel and lithium producer which Michael looked at back in August.
“The buy trigger that I highlighted led to a rally in the share price from just under $13 to just under $15 in the space of two weeks,” Michael said.
“Once again we have an opportunity here to buy IGO at the bottom of the trading range.
“Last Friday it formed a “bullish engulfing candle” (see circled area) which is where it opened the day lower but closed above the body of the previous candle on high volumes.
“We can also see some bullish divergence on the RSI, which is where price has traded under the August low, but the RSI is currently higher than those August lows.
“Current levels are therefore a buying opportunity, and we expect IGO to once again head back up towards $15,” Michael said.
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