Technicals | 10:45 AM
This story features CORE LITHIUM LIMITED.
For more info SHARE ANALYSIS: CXO
The company is included in ALL-ORDS
As Core Lithium retests its April high again, Fairmont Equities' Michael Gable highlights the stock is showing solid buying support.
By Michael Gable
Rising US yields has had a negative effect on the market in the past week with the only real place to hide being energy stocks.
Although we are still bullish on energy stocks, we also believe that weakness in other commodity stocks will be short-lived and that dips in general represent a buying opportunity.
The US Federal Reserve makes its interest rate decision on Wednesday night and looking at the 2-year yields, a rate rise is pretty much priced in already.
This means that markets have a fair chance of recovering later in the week.
Today, we offer a technical view on Core Lithium ((CXO)).
We last looked at Core Lithium on 7 July where we noted that “Core Lithium is therefore a buy here and it should now start a new uptrend”.
After rallying strongly in August, it hit the April high and then eased back.
The pullback was fairly shallow and the stock is back near the old high again.
This is a positive sign as it demonstrates good buying support.
Core Lithium looks poised to rally further from here and current levels remain a buying opportunity.
More conservative investors may wish to wait for a breakout first and therefore buy Core Lithium on a daily close above 40c.
Initial stops can be considered at 32c.
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
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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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For more info SHARE ANALYSIS: CXO - CORE LITHIUM LIMITED
