IGO is a $9 billion Australian nickel and lithium producer. It has grown in prominence over the past few years as demand for battery metals increases.
“The past month has seen the share price fall away due to an impairment against a recent acquisition and some lower guidance than what the market was expecting.
“This share price weakness now appears to be overdone and after selling the stock in mid-July, I have now been buying back into it.
“The recent share price weakness saw IGO decline quite rapidly towards the bottom of its recent range.
“As we’ve seen before, this could lead to a situation where it finds support and recovers almost as quickly.
“The stock is now back near the March low.
“There was good buying off the lows last week followed by an “outside day”.
“This is where the share price opens lower but closes the day higher than the prior day, which is a bullish sign.
“Momentum indicators are also triggering a buy.
“With a stop back under the March low, current levels represent a good risk/reward trade and IGO is therefore a buying opportunity,” Michael said.
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