Hi guys, I have here the chart of Nihao Mineral Resources International (NI as the ticker symbol in the Philippine Stock Exchange), a Philippines-based company engaged in exploring, developing and operating nickel properties. Word on the street, Nihao is starting its first nickel shipment to China which probably propelled the stocks to move higher for the last two trading sessions. Shipments to Australia and Japan could also take place in the coming months according to the news clarification released by the company. As a result for yesterday’s trading session, its volume traded daily went to a 4-month high (indicated by the violet circle). High volume is a good thing since it adds more liquidity to the stocks thus buying and selling would be easier.
Chart-wise, it seems to me that the Nihao stocks have broken passed above the resistance of its 8-month triangle formation (indicated by the red circle) and could push higher. The next resistance it could now encounter is the 3.80-peso level. Once that level is breached, the next resistance could be the 4-peso psychological area then 4.25 pesos. On the flip side, if the stocks change its course and head south, the triangle’s support could prevent the slippage. In case the stocks break below the triangle’s support, the next marker could be the 3-peso psychological level.