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International Ferro Metals (IFL) 120.83p

The shares of the ferrochrome producer were initially hit amid the South African energy crisis, as the company had to shut two furnaces. However, the positive news is that following the crisis the price of ferrochrome shot up, as South Africa accounts for most of the world’s supply. Analysts are now saying a pound of ferrochrome, which reached a high of $1.21 recently, could reach $1.50 in the next quarter. International Ferro Metals’ results earlier this week (Monday 3 March) were well received by the market, with the company showcasing its ability to ramp-up production while reassuring over its capacity-expansion programme. A weak rand is also helping the cost base. Taking into account all these factors, analysts say that forecast upgrades are likely in the short term. The chart shows that a resistance line at 120p, which has stopped the price going higher three times in the past six months, has been broken, and this is another bullish sign. Go long, placing a stop loss at 113.5p.

ACTION: BUY Int. Ferro Metals • Target 133p • Stop loss 113.5p

TIME TARGET: 6 WEEKS