We think the risk/reward proposition for buyers of Ivanhoe Mines (TSX:IVN) is quite attractive from current levels (below 1.70).
From a Technical Analysis perspective, the multi-month falling wedge has dropped into the 1.50-1.70 support zone. Volume has also dried up which we like to see before a big bounce – $2.00 is a reasonable short term rally target.
We also know that Ivanhoe Executive Chairman Robert Friedland will be presenting at the Mining Indaba conference in Cape Town, South Africa next Wednesday (Details).
We expect to be present for Mr. Friedland’s presentation.
The pressure will be on the Singapore based mining legend, 63, to inspire investors discounting the DR Congo and South African jurisdictions of Ivanhoe’s key projects.
South Africa in particular has suffered from the recent global emerging markets selloff.
Disclaimer: Author owns shares in Ivanhoe Mines Ltd. and therefore the article is not to be considered unbiased and fully independent. Please read Ivanhoe Mines Ltd.’s Cautionary Statement Regarding Forward-Looking Statements’s carefully.