Mineral Resources On A Run

This story features MINERAL RESOURCES LIMITED. For more info SHARE ANALYSIS: MIN

By Michael Gable 

We have been bullish on the energy sector for many months now, even mentioning last year on Switzer TV that the charts indicated a US$70 target for oil, despite it trading under US$50. But how many of us really believed we would see that so soon? It just didn't seem to make sense at the time. However, there are a lot of bulls jumping on the energy bandwagon now leading up to a decision by the US on the Iran nuclear deal. This means we need to be wary of a "buy the rumour sell the fact" situation in the short term which could see a bit of heat come out of the energy space.

Beyond that we remain positive on energy stocks. In terms of today's report, we cover lithium and iron ore miner and mineral processor Mineral Resources ((MIN)).

After peaking near $22 in January, MIN then consolidated the prior uptrend, heading as low as $16. The stock then broke free of that consolidation in mid-April and is now rallying strongly on high volume. The stock should now head to a new high. A preferable entry point would be on short-term weakness back towards support near $19.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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