Nihao Mineral Resources International (NI): Time To Shine Once Again?

Nihao Mineral Resources International (NI) is one of the most loved and hated stocks last year. After hitting more than P8 late in 2009, NI has gone downhill leaving many traders trapped and forced many others to cut their losses.

However, NI is showing some signs of life and opportunities to win some love back. The chart below is NI's 6-year uptrend support wherein it suggests that its price is currently hovering above such support. There is also a potential inverted head and shoulder formation coming and should such pattern come into a reality, NI is bound for some significant rebound. A target price of P4 is ideal for the inverted head and shoulder.

This second chart shows NI's price action for the past 3 months. NI has found a resistance at P2.50 and is out to challenge it once again.

This last chart shows that NI has been gaining momentum as it has risen for the past 3 days and its RSI (encircled in green) is showing that there is some buying pressure on NI.

NI's momentum is not yet significant but is worth looking at. Personally, I think that it is a good buying opportunity for NI.

Personal Disclosure: Bought some NI @ P2.27