The VanEck Rare Earth/Strategic Metals ETF provides investors with effective exposure to the investment performance of the MVIS Rare Earth/Strategic Metals Index. This is comprised of several US, Chinese and Australian based companies involved in the exploration, mining, and production of metals such as lithium, cobalt, titanium, and vanadium, among others
Technically, the price appears to have completed a bullish Elliott wave pattern (see the main chart and the insert), making it an attractive investment opportunity. The presence of this pattern suggests the ETF price could extend further up. A break above key resistance levels will further support a bullish bias.
The ETF is trading below its 200-day simple moving average of ~$87 but is slowly trending back towards it - this suggests fading selling pressure and is a positive indicator of the price trend.
Emerging upside momentum, according to the MACD indicator, as well as the upward trajectory of the OBV indicator (which uses volume flow to predict share price changes), supports a bullish bias.
Share Information
| Share code | REMX |
|---|---|
| Industry | ETFs |
| Market Capital (ZAR) | 0.63 billion |
| One year total return | 0.14% |
| Return year-to-date | 11.08% |
| Current price(ZAR) | 84.60 |
| 52 weeek high(ZAR) | 105.86 |
| 52 week low(ZAR) | 73.05 |
| Financial year end | - |
| Closing paragraph | We expect moderate price volatility going forward. |
Buy/Sell Rationale
Technical Analysis:
Long-term fundamental view:
| Share Name and position |
DIOD - BUY (Continue to hold) |
HLMN - BUY (Continue to hold) |
KO - BUY (Continue to hold) |
COST - BUY (Continue to hold) |
STZ - BUY (Continue to hold) |
CEIX - BUY (Continue to hold) |
|---|---|---|---|---|---|---|
| Entry | 82.60 | 8.01 | 61.85 | 501.27 | 228.16 | 63.90 |
| Current | 86.88 | 8.36 | 63.86 | 501.89 | 224.87 | 61.81 |
| Movement | 5.2% | 4.4% | 3.2% | 0.1% | -1.4% | -3.3% |
| Summary text |
An inclining channel pattern remains attractive. The stock remains above its 200-day simple moving average and is testing its 50% Fibonacci retracement level.
Our profit target is $98 with a trailing stop-loss at $80.50. Exit the position on 27 July 2023. |
Repetitive cycles in sequences remain attractive. The stock is testing its 200-day simple moving average. Fading downside momentum supports the bullish trend.
Our profit target is $10 with a trailing stop-loss at $7.50. Exit the position on 10 October 2023. |
Asymmetrical triangle pattern during a prior uptrend is noteworthy. The stock remains above its 200-day simple moving average. Fading upside momentum, however, is a concern.
Our profit target is $67 with a trailing stop-loss at $62. Exit the position on 16 June 2023. |
A confluence of technical indicators that support the bullish trend remains of interest. The stock is testing its 200-day simple moving average. Upside momentum regained some strength.
Our profit target is $560 with a trailing stop-loss at $480. Exit the position on 7 July 2023 |
A bullish megaphone pattern remains of interest. The stock is trading below its 200-day simple moving average and is testing its 61.8% Fibonacci retracement level. Price momentum has halted, which is a concern.
Our profit target is $252 with a trailing stop-loss at $218. Exit the position on 21 June 2023 |
A falling wedge pattern, which occurred during a prior uptrend, is noteworthy. The stock is testing its 200-day simple moving average as well as its 23.6% Fibonacci retracement level. Upside momentum supports the bullish trend.
Our profit target is $77, with a trailing stop-loss of $58. Exit the position around 2 August 2023 |
