Mineral Resources (MIN) is an $8 billion mining services company with operations across lithium and iron ore.
“So far this year we’ve seen huge swings in MIN’s share price, with a number of moves from about $45 to $65 and then back again,” Michael said.
“My advice is that commodity stocks are always to be traded and investors should not get caught up in the narrative that lithium demand will equate to sky-high share prices.
“Currently we have MIN back at the bottom of its recent trading range and it is displaying signs that it will bounce once again.
“The MIN chart looked very ugly in June, starting with a big sell-off on 1 June and falling nearly $20.
“In early July, it broke under major support, which was the February and March low (look at the blue line on the chart).
“However, instead of falling away, it quickly jumped back up.
“This means that break under support was possibly a “false break”, and that can be a very bullish sign.
“We, therefore, believe that current levels are a buying opportunity and MIN should recover well from here.
“If it was to trade back under that blue line, however, then the next target down is $40,” Michael concluded.
Mineral Resources Limited (MIN)
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