Mineral sands explorer Iluka Resources attracted market attention today, gapping sharply higher at the open, and recording a 13% rise for the day, to reach a high of $8.32. This rise comes in the wake of an excellent quarterly report.

Weekly chart

This shows a change in trend, after the shares had trended lower from $12 three and a half years ago.

Daily chart

Today’s surge has resulted in the share-price penetrating resistance of the trading range of the past twelve months, and attaining a new high for the year.  However, the RSI is bordering on the over-bought zone, warning that the price could soften tomorrow. Inevitably there will be profit taking, but will there be enough buying support to offset this, and to sustain further gains?

These charts should be regarded as being of academic interest only. Readers should seek stock-broking advice before investing themselves.

Categories: Chart Analyses, Chart Review

Tags: RSI, Trading range