“Prices in iron ore and lithium have fallen this year and unfortunately for Mineral Resources, it is exposed to both,” Michael said.

“Add to that some investor anxiety over debt levels, and you have a share price that has tumbled over the past few months.

“Despite this, it is now showing signs of a reversal.

“We have a buy signal on the weekly RSI, and it has also formed a bullish engulfing candle (circled), with high volumes going through the stock.

“Most likely, we see MIN bounce further from here and head back up towards the high $50’s to retest that old major support level.

“An eventual break above that should then see it go on to retest $80.

“MIN is therefore a buy here for those happy to take a risk that these are the lows of the commodity cycle,” Michael said.

Mineral Resources (MIN)

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