InvestedCentral
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MFN is a $619 million basic materials company that engages in the exploration, development, and mining of precious and base metal properties in Mexico and the United States. Many of the metals and mining stocks have begun to improve technically and MFN is no different. It finished on Thursday one penny above key resistance at both price resistance ($9.40) and the 50 day SMA ($9.40). The thing that caught our eye, however, was the increasing volume on the move. Combine that with an improving MACD line that is nearing a centerline crossover and we see significant potential here. Two recent attempts to break above the 50 day SMA have come with solid volume, so it appears as if the stock may be under accumulation. A breakout would confirm. Initial resistance will be felt near the $9.70-$9.75 level, but a clear break above that area would likely lead to significant gains. To the downside, watch the rising trendline which currently resides near $9.10 support.
