why the downer, page-13

A report from egoli

MINI Trading Idea: Minara Resources (MREKZA) ?Technically a Buy

Its no secret that the resources sector is in play, and no company can be considered safe. RIO , JBM, RSP, EQN, ZFX and OXR are either in play or have been speculated to be near term takeover targets. And further to this, news came out over the weekend that Vale or Anglo American are interested in buying Xstrata. All this boils down to is that you have to be long the mid tier resources players. MRE pops up as another stock which would be ripe for takeover, given its recent operational issues and underperforming share price. The stock looks good technically and is in the right space?nickel up 5.5% on Friday? Buy MREKZA on break of $6.60



Technically speaking MRE is looking very, very interesting. After a big rally up to a high at $9.50 in May this year, the stock has pulled back and bounced off a level at $4.50. since then the stock has traded in a pennant formation, as seen by the higher lows and lower highs. The stock is nearing the end of this consolidation, and is looking like it has risk to the upside. A breakout of $6.60 level would signal the buyers have won out and the stock is set for higher prices. Looks for a target towards $8 if $6.60 can be broken.