Resolute Riding Gold Recovery

This story features RESOLUTE MINING LIMITED. For more info SHARE ANALYSIS: RSG

By Michael Gable 

Market sentiment remains on edge; however, it is surprising that every big statement from US President Donald Trump is taken at face value and over-analysed, but when we realise that his bark is bigger than his bite, then everything calms down again. The sell-off has brought some shares back towards some interesting levels. We've been looking for lower levels on the banks, and after NAB hit our downside target a month ago, we now see ANZ and WBC come back towards our targets.

We continue to remain positive on commodities, and their resilience in the last week further confirms our view that you need to be overweight that sector. Gold is also a sector you need exposure to, and we take a look at another gold stock in this week’s report, Resolute Mining ((RSG)).

RSG had spent the back half of 2017 being fairly range bound. It has now broken clear of that and should make a fairly rapid recovery to retest the 2017 high near $1.80. That would also represent a 61.8% retracement of the 2016 – 2017 decline.

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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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