MNB 1.61% 6.1¢ minbos resources limited

Ann: Minbos signs Agreement to deliver NPK Fertilizer to Angola, page-54

  1. 13,852 Posts.
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    It's pretty clear that the rally for MNB was halted by the US market correction accelerating (red vertical line). I don't think that would surprise anyone.
    It should be reasonable to expect that MNB would rally quickly again if investors begin to feel that the correction of US stocks has run its course. Perhaps for some that would need a close above the 50DMA which appeared to act as resistance last night, but as I see it the correction has flattened off for now so I'm thinking the odds are that the low is already in and we are getting set for the traditional Christmas rally ahead.
    The MNB chart looks like a good buy to me (certainly better than the US S&P500 with MNB having a rising 50DMA versus a flat MA for the S&P). The price has formed a bullish flag at a level just above support from the closing high price earlier this year (former resistance) and just above MNB's 50DMA. As long as the US market holds above 4300, I think MNB will hold within this recent range. I also think the longer the US market goes sideways, the more likely it is that MNB will rise again, with or without news as we draw closer to the DFS next quarter and production later next year. If the US S&P500 breaks above the 50DMA I think MNB should be able to move higher much more quickly. It should be a very good quarter for us. The flag has a height of 4.5c. As I see the chart, if the price breaks out of the flag on the upside, it should be targeting at least around 20c as a round number resistance or at least 20.5c which is the 16c high of the flag plus the 4.5c range of the flag = 20.5c as a minimum likely target.
    I think a break below is much less likely (I guess more likely if the US really craps itself) and it should then find good support between around 9.5 and 10c. So it seems to me there is more upside than downside for now from 13c.

    https://hotcopper.com.au/data/attachments/3666/3666941-edf0a096bacbb916f353fe25d8b49280.jpg





    Last edited by chuk: 08/10/21
 
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6.1¢
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4 564815 6.1¢
 

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6.3¢ 451681 3
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