MGX Minerals Inc.
The company recently announced new discoveries and the completion of a new drilling program, and no later than yesterday (Dec. 7th) the commissioning of rapid lithium recovery system, deployment site and water processing contract. It is undoubtedly nearing production and certainly is a promising junior miner to keep an eye on.
MGX Minerals on the stock markets
The company stocks are traded on the Canadian Securities Exchange (CSE: XMG), the US Other-The-Counter market (OTC: MGXMF) and Börse Frankfurt (FWB: 1MG).
The weekly price chart here below was captured early during yesterday’s (Dec. 7th) trading sessions. At the time of writing the MGXMF price has moved above CAD 0.8.
The following is the life price chart:
How to invest in MGX Minerals?
The stock price appears to be consolidating the initial move up when it broke above CAD 0.2 end of last year to go strait up to CAD 2.1 within a short few months.
The lateral triangle-shaped consolidation plotted on the chart now needs to resolve on either side and it is certainly not a good idea to intervene in the middle of nowhere.
Preferably the rational investor should wait for the price to break above the upper red resistance boundary, which could happen sooner than later considering the speed of growth of the electric vehicles and energy storage markets.
- We will buy the MGXMF breakout above 0.9 with a STOP LIMIT order in the price range $0.91 to $0.92.
- We will place a STOP LOSS around the $0.75 price level.
- When the breakout happens the stock price should then move in direction of the previous record at $2.1 and surpass it on the longer term.
- Profit-to-Risk ratio > 6 (ca. 1.2 / 0.2)
I opened a long position early after the market open yesterday at $0.76 and have already moved my stop order to break-even price.