Hi nk,
There is significant resistance between 34c and 36c on the weekly P&F chart. P&F charts are excellent for determining support and resistance lines and chart patterns. 34c close on a weekly basis is a breakout from a symetrical triangle but on such a breakout you would assume that there should be enough volume to push the price above resistance at 36c which would confirm the breakout. 36c is also the 61.8 fib retracement level from the March 2006 high / June 2006 low. Fibonacci stated that if the share price retraces 61.8% of a decline it has a very good chance of retesting the previous high. The breakout from the symetrical triangle on volume would add weight to this outcome. The target for the symetrical triangle breakout is 60/65 cents.
Silver is also getting ready to break out of an ascending triangle. A break above $14.50 gives a target of $20ish. A US$20 silver price would support a MMN share price of 65c which does not take into consideration any increase in production to 4M oz, Talley Ho or NGG. Noting that MMN is a pure silver play, has 40% of its share capital held by overseas investors and has its operation in Australia, I would not be surprised to see MMN hit $1 during this next run. MMn historically has risen between 400-500% from its lows during the last three silver price spikes. Using this analogy and starting from the current movement low of 20.5c this would indicate that MMN could rise to between 80c to $1. Noting that they are in production, I think the rerating may be even more significant!
Cheers,
PhillW
MMN
macmin silver ltd
