Stocks Special Reports LICs Hybrids Technical Analysis Funds ETFs Tools SMSFs
Learn
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features Hybrids Technical Analysis SMSFs Learn
About

News

Some long-term Buying opportunities

Lesley Beath  |  07 Dec 2010Text size  Decrease  Increase  |  

Page 8 of 8

Mirabela Nickel Limited (MBN)

Technical Recommendation: Buy

Stop/Loss: $1.63

(Click here for MBN fundamental research and company information)


Technical View

MBN declined by 92% between May 2008 and January 2009. It then rallied sharply (+420%) to the September 2009 high, before declining by 55% into late October 2010.

Volume and momentum indicators suggest that the stock has been basing since late August, and the recent break above the April downtrend has resulted in a sharp move to the upside.

In Monday trading price has pushed above the September and October highs, completing a small base formation. The next resistance is the 200DMA which currently sits at $2.05. Given the strong gains over the past few days, this resistance could curb upside potential in the near term; but from a longer-term perspective the stock is positive.

A move to test the September 2009 downtrend is likely over the next few months; this gives upside potential to approximately $2.36.

MBN is rated as a Speculative Buy.

The stop-loss level is $1.63.

 

MBN chart

(click image to enlarge)