Chart of the Day: A break of $40, and lower levels may well follow for Mineral Resources
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The best thing about technical analysis is that it seeks an objective take as to what has happened.
Such is the nature of price.
It doesn’t know what you think about it, nor does it care. It just is what it is.
Mineral Resources (ASX:MIN) has always been a favoured stock and consistently an excellent technical stock, with typically
long and strong moves that can be quite profitable if one is on the right side.
Ellison has a penchant for brash and unapologetic management of the company, and I would describe its price action as having the same qualities in both directions.
The longer-term uptrend that lasted until August was one of the better moves of recent years, and he recent downtrend as denoted by the black trend lines has been just as emphatic.
And here we are, hemmed in by the recent downtrend and the 200-day simple moving average in red, awaiting the next move.
Which is to say, that the price will tell us what our next move should be.
A break of $40, and lower levels may well follow.
Should it hold and / or the short-term downtrend line be broken, MIN has a lot of real estate above current levels that it can happily explore.
With no current position, we are watching closely to see which way the current set up will resolve.
We won’t be shy to get involved when it does.
I would wager Mr. Ellison wouldn’t want it any other way.
Steve Collette of Collette Capital Pty Ltd (ABN 56645766507) is a Corporate Authorised Representative (No. 1284431) of Sanlam Private Wealth (AFS License No. 337927), which only provides general advice.
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