Mineral Resources (MIN) is a $13 billion Australian mining company with a portfolio of mining operations focused on iron ore and lithium. Founded in 2006 in Western Australia, with its mining operations in that state, Mineral Resources was added to the S&P/ASX 50 [1] in June 2022 as one of the 50 largest companies by market capitalisation [2] on the ASX.
“The share price has done extremely well in the past few years,” Michael said.
“However, it has pulled back in the past six months due to falling prices in iron ore and lithium.
“Despite this, I am seeing signs that the share price decrease might be over and it could be time to start buying back into MIN.
“In the past six months, we can see that there was major support near $75.
“However, it broke under that level a few weeks ago.
“This could have been a negative sign, but since then we have seen some bullish price action occur.
“By gapping lower in May and then gapping back up again, it has created an “island reversal” (circled in the chart below).
“With the share price respecting that gap, we now have a more bullish sign that the downside is likely to be over.
“MIN is hovering just under $75 as those looking to sell MIN near $75 are being met by buyers stepping in down here.
“Current levels are a buy, but if MIN can get back above $75, then the chart starts to look even more bullish as it means that all the $75 sellers have been exhausted and that could be a trigger to add to positions.
“A drop under the May low would be a negative,” Michael said.
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