NRW Holdings Shares Ready To Rally

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This story features NRW HOLDINGS LIMITED.
For more info SHARE ANALYSIS: NWH
The company is included in ASX200, ASX300 and ALL-ORDS

Fairmont Equities' Michael Gable sees an opportunity in NRW Holdings shares following a successful breakout and retest, with the technical trend pointing to further upside.

By Michael Gable 

US markets were closed overnight. However, in the past week we saw prices of oil break out, as anticipated, and precious metals stabilise.

Copper prices also made new highs overnight.

Long-term yields in the US eased back a bit, and although short-term the higher yields are a negative for gold, over the longer-term it will have no effect because the reasons yields are heading higher is because of US inflation and debt levels.

Because of this, investors will look to diversify away from US dollars and this leaves hard assets such as gold as the best alternative.

Locally, we seem to be set for at least another rate rise by the end of the year.

The uncertainty over this will make it difficult for a little longer to invest in interest-rate-sensitive stocks.

This includes retail, property, and tech.

Banks still seem to be trading well, but that might be a function of passive investing flows and investors looking for dividends. 

Today, we offer a technical view on NRW Holdings ((NWH)).

We last looked at NRW on 28 July and made the following comment, 

“At the moment, it is still consolidating in the form of a bull-flag. For those looking to get in early, NWH is a buy at these levels. More conservative investors can consider waiting for the upside break beyond $7.50.”

The stock broke out of this consolidation a few weeks ago and has come back to retest the breakout.

NRW should continue to trend higher from here, so current levels are a buying opportunity.

Initial stops can be considered near $6.60.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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