Bannerman Energy Starting Next Major Rally

This story features BANNERMAN ENERGY LIMITED. For more info SHARE ANALYSIS: BMN

The company is included in ASX300 and ALL-ORDS

Michael Gable of Fairmont Equities sees momentum building for uranium pricing and stocks with Bannerman shares ready to rally past recent highs.

By Michael Gable 

US markets were closed overnight but the S&P500 Index remains only one day down from an all-time high.

However, the big movements in our opinion were yet again in the resources sector. In the uranium space, on the back of a guidance downgrade from the world’s largest producer (Kazatomprom), came another downgrade from the world’s second (Cameco).

This can only mean one thing – higher prices. With the biannual World Nuclear Association symposium on this week as a major catalyst for the sector, we expect that last week’s rally in the uranium miners is nothing compared to what is around the corner.

In the world of precious metals, we have seen some nice breakouts in gold and silver. Once again, this is only the start of the next rally and we expect quite a bit more upside from here over coming months.

Today, we offer a technical view on Bannerman Energy ((BMN))

After the peak in late June, Bannerman then pulled back to form a large pennant (diagonal blue lines).

The past few days has seen it break out of this (circled) and this means that Bannerman is now commencing the next major rally.

Bannerman is a buy here. It could consolidate briefly near $3.50, but a break of that should then see it run up towards $4.50 where we can reassess.

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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