Founded in 1831 and with its headquarters in Melbourne, Incitec Pivot (IPL) is an Australian multinational organisation that manufactures and distributes industrial explosives, industrial chemicals and fertilisers to the agriculture and mining industries.
“Recent weakness in the share price has been due to lower fertiliser prices,” Michael said. “However, there has been interest from other parties to purchase this business which could unlock the value of the explosives business, which is doing quite well.
“The share price chart is also indicating that we have seen the lows and the share price is ready to head higher again.
“IPL first grabbed our attention in early July where we noted that there were early signs of it finding a low and that it was shaping up as a higher-risk trade.
“Since then, we have seen it break the downtrend and then trade sideways.
“We can now see a very clear line of resistance near $3.10 and IPL forms what looks like an “inverse head and shoulders”.
“A daily close above $3.10 would be the next buy signal. If that were to occur, then we would be targeting levels up near $3.60,” Michael said.
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