Technicals | Mar 24 2010
By Rudi Filapek-Vandyck
On what is a rare occasion, the TechWizard has cast his eye over some micro caps movements in the Australian share market. He reports ambitious uranium developer Mantra Resources ((MRU)) has caught his attention.
The Wizard notes uranium stocks have largely been abandoned by investors over the past year or so as supply in the global uranium market has exceeded expectations and demand, and this has kept a firm lid on prices.
Recently, spot prices for uranium have started to show signals they might have bottomed and this has sparked a return of more speculative oriented investors into uranium stocks.
As far as Mantra goes, the Wizard notes the stock has had an absolute fantastic run, coming off a low of $0.50 to reach as high as $6.42 this week.
From a technical point of view, as well as from a market momentum driven observation, there doesn't appear to be any reason on the horizon why the shares cannot continue surging to higher levels, opines the Wizard.
It just goes to show, he adds, that even in a sector that has been left aside for many months, there can still be an opportunity for those who dare to look at the right places.
When will Mantra's rally end? Nobody knows, reports the Wizard. Investors willing to jump on board should do so by buying in on dips, he says.
The Wizard reports he does not own any shares in the company.
