Chart of the Day: Plenty of immediate upside targets for Ionic Rare Earths
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Let’s get into it.
Iconic Rare Earthss (ASX:IXR) is a bullish set up from a technical perspective.
It’s in an uptrend. The moving averages are sloping up.
It’s shown us that when it wants to the market can get a hold of it – as evidenced by the fierce run from 1.5c to 6c at the start of this year.
There are no immediate gaps on the chart to worry about that need to be filled.
The company surpassed 4c resistance yesterday on increasing volume, which was a positive sign. However, after touching 4.5c in intra-day trade, it has now settled back to close at 4.2c, leaving a daily selling candle.
That infers that a test of 3.8 – 4c may be on the cards.
In our view that would make attractive buying.
Given the negative response to the scoping study in late April, there are plenty of immediate upside targets, the most immediate being 4.7c, with further potential to those March highs above 6c.
Back the other way, and we don’t need to hold this below 3.5c.
The company is well funded – reporting over $11m on balance sheet at their last quarterly – with an updated quarterly anticipated before the end of the month.
We are long as of yesterday, and will manage the trade to the above risk, looking for 4.7c first, with potential to above 6c if things go their 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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