Ivanhoe Mines Ltd. (IVN.TO) - July 2, 2025

Today, we are going to highlight Ivanhoe Mines Ltd (IVN.TO) on our Daily Stock Report. In looking at the SIA Relative Strength Matrix Position chart on IVN.TO in the SIA S&P/TSX Composite Index Report we see the SIA Platform issued a Red Unfavored signal back on January 8, 2025, at a price of $16.92. The earlier signal of a Neutral Zone with a negative SMAX occurred on November 13, 2024, at a price of $17.53. Since then, the shares have continued to weaken further and remain heavily entrenched at the bottom of the Red Unfavored Zone; with a current closing price at $10.23 representing a 65% drop since the red unfavored rating, and a 71% drop since the earlier Neutral Zone with Red SMAX rating.

Today’s reflection on IVN.TO is a great example of the value in staying away from investments in the red unfavored zone and yellow zone if the SMAX has turned negative. Many advisors may instinctively look for names in these zones with the mentality that the shares are oversold and a “value buy” is in play. However, “value buys” may instead be “value traps” and the shares may continue to fall further in price, which is in fact what has occurred here. This reinforces SIA’s methodology not to pursue a “contrarian” mindset as names in the unfavored zone are not exhibiting any relative strength, the sellers are in control, and not many market participants are looking at the name.

Let’s dive in and see what the candlestick chart looks like and assess what may lie ahead for Ivanhoe Mines. In looking at the last few years we see a classic double top form when the shares ran up sharply from late November 2023, at the $10.00 area to its top at $21.00 in May of 2024. This was followed by a sharp pullback to $15.50 where the shares found a floor in August of that year. Then another “rally up” ensued when the shares hit the $21.00 ceiling once again in September of last year when the bears took over and a downtrend resumed pushing the shares down past the $15.50 support level in February, completing the double top. Now we see the shares at $10.23 which was the same price point back in November 2023, bringing the shares back full circle to the starting point of this formation. We are at a critical support level here at $10.00. It will be interesting to see if the shares can hold here. If support fails, next support looks to be just under $8.00. To the upside, resistance can be found at approximately $12.75 and, above that, $14.00.

In looking at the candlestick chart we see a steady downtrend established since IVN.TO’s top in May of 2024. The shares broke below two long-term downtrend lines in both March of 2025 at $12.98, and last month at $11.76.

The shares recently formed a 3-box reversal to the upside, so it will be interesting to see if this rally can materialize into something more sustainable. If this move fails, support is at the 3-box reversal to the downside at $9.84 – which also happens to be where support held historically in December 2022, June 2023, and November 2023 making this a critical point to watch to see if it holds there again. To the upside resistance is at $11.53 and, above that, $12.73. With a SMAX score of 0 out of 10, IVN.TO is not showing any short-term strength against the asset classes.

Ivanhoe Mines Ltd is a mineral exploration and development company. The company, together with its subsidiaries, explores, develops, and recovers minerals and precious gems from its property interests located in Africa. The group explores platinum, nickel, copper, gold, silver, cobalt, iron, vanadium, and chrome. It operates in four segments: Platreef property, Kamoa Holding joint venture, Kipushi properties, and the Company's treasury offices.