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We think the risk/reward proposition for buyers of Ivanhoe Mines (TSX:IVN) is quite attractive from current levels (below 1.70).

From a Technical Analysis perspective, the multi-month falling wedge has dropped into the 1.50-1.70 support zone. Volume has also dried up which we like to see before a big bounce - $2.00 is a reasonable short term rally target.

Mining_IndabaWe also know that Ivanhoe Executive Chairman Robert Friedland will be presenting at the Mining Indaba conference in Cape Town, South Africa next Wednesday (Details).

We will be in the house for Mr. Friedland's presentation.

The pressure will be on the Singapore based mining legend, 63, to inspire investors discounting the DR Congo and South African jurisdictions of Ivanhoe's key projects.

South Africa in particular has suffered from the recent global emerging markets selloff.

 

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