Manganese X (MN.V) is a company founded to take advantage and profit from the global move to renewable energy. Also on their home page:

Manganese X Energy Corp. intends to provide a secure ethically sourced manganese supply by exploring and developing its manganese rich deposit near Woodstock New Brunswick, the Battery Hill Project. The Fraser Institute has recently called New Brunswick one of the best mining jurisdiction in Canada, a country known to be mining friendly.

The Battery Hill property consists of 55 claims totaling 1,228 hectares located in Carlton County, New Brunswick. It encompasses all or part of five manganese zones, Iron Ore Hill, Moody Hill, Sharpe Farm, Wakeield and Maple Hill.

The company also has projects focusing on graphite and also on copper/cobalt, all commodities associated with lithium batteries and the green movement in general.

So why Manganese?

Manganese dioxide is a key element in the manufacture of the most promising types of Lithium Ion batteries and these are the type of batteries that in the future will power the world. They are the most promising because of their superior storage capacity, safety and cost.

Taiyou Research has predicted manganese will become a more than US$30B market in rechargeable Lithium Ion batteries by 2020.

Manganese Demand Drivers:

  • A critical component of the cathode material in modern alkaline, lithium, and sodium batteries
  • Green/clean energy credentials – weening off fossil fuels.
  • Likely to remain the preferred energy material for the future.
  • Well suited for cathode mix in bulk energy storage & energy management.
  • Ideal for portable power
  • Key material for integrating solar and wind renewable energy.

Our very own Lukas Kane, just recently covered Manganese X’s news on their graphite property, and covered some key fundamentals regarding Manganese, as well as Manganese X’s projects. His article can be read here. Highly recommended reading to get a grasp of the fundamentals, and to learn more about the company.

Being a technical trader, my readers know that I look for particular patterns. These provide me with high probability of success trades. You can see this by looking back at my track record and calls on Market Moment as well as on our Discord Trading Room. Manganese X is presenting us with one of these high probability set ups!

First of all, after price spiked up to 1.11, we have retraced to a major support zone at the 0.17 zone. I am showing you a zoomed in version of the chart above, but if you scroll/zoom out on your chart, you will see that this area is a major flip zone ( an area that has been both support and resistance).

Price bounced at this zone, and we have formed what is known as a double bottom pattern. Furthermore, we seem to be ready to print an inverse head and shoulders pattern. Now traders know that these reversal patterns are not triggered until we break above the neckline (fancy way to say resistance or price ceiling for these patterns). The neckline we are working with is the 0.30 zone.

As you can see from my chart, I drew two arrows outlining what would be the right shoulder in our head and shoulders pattern. I would like to see price pullback (like it is today) before reversing and eventually breaking above 0.30. For those that are not too familiar with this technical pattern, don’t worry about the details so much. The key is a break and close above 0.30. The DAILY close above this zone triggers the breakout and this high probability pattern.

As a trade, a break would take us to the next resistance zone around the 0.58-0.60 zone. Once that zone breaks, we would be aiming to retest recent highs at 1.11.

Electric Vehicles (EV) are really taking off. Everyone knows about Tesla and Nio (and I suppose Nikola as well), but the Quantumscape news regarding their battery technology is very exciting. We even heard that Apple wants to produce an Electric Vehicle by 2024-2025. As larger auto manufacturers shift their already ready production lines to produce EV’s (Volkswagen being the one many are suggesting) they will be able to produce more vehicles than Tesla, who are still trying to increase their production lines. Commodities linked to EV batteries will be in demand, and Manganese X is in a great position to benefit from this trend.

Going green will be big going forward. In my previous posts, I have said green infrastructure and green projects will be the best way to raise taxes on the people. Taxes need to go up due to the fiscal policies to combat covid. Green taxes are the best because people are less likely to complain, AND government can say it will be for green projects, which will create jobs and will boost the economy. This is coming. You are already seeing the beginnings of it.

Once the Biden administration comes in, green energy will be a key part of his energy and climate platform. From Lukas Kane’s aforementioned article:

“President-elect Joe Biden calls climate change an existential threat to America’s environment, health, national security and economy,” recounts The Conversation, “Biden has pledged that on his first day in office he will bring the U.S. back into the Paris Climate Agreement.”

“The centerpiece of Joe Biden’s energy and climate proposals is a call for investing US$1.7 trillion over 10 years to promote a portfolio of clean energy technologies,” stated The Conversation.

 

Full Disclosure: Manganese X is an Equity Guru marketing client.

Written By:

Vishal Toora

Vishal has been a student of the markets since 2012, having experience trading markets on a proprietary, boutique investment, and the retail level. His goal is to encourage others to take control of their financial future, and simplify the market with his market structure method. He spends his free time reading non-fiction, supporting Chelsea FC, and participating in too many nerdy things to list.

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