MetalsX: Opportunity Awaits

This story features METALS X LIMITED. For more info SHARE ANALYSIS: MLX

By Michael Gable 

The Australian share market has edged higher this past week but crucially remains below the old support level near 7200. If we spend a few more days under it without a major sell-off, then we can start to become confident that we will chop sideways for a while. At the moment, the risk, on balance, is still to the downside.

US markets are also displaying signs that they will drift sideways at best for now, but a further capitulation is still a real possibility. A sideways market, however, can provide shorter-term opportunities if the set-ups are good, stops are tight, and position sizes are small. It is still too early for the big opportunities.

In today's report, we have a chart which highlights a potential opportunity in MetalsX ((MLX)).

MLX has been in a nice steady uptrend over the past several months. Most recently, it is forming a very clear resistance line just under 60c. This provides traders with a very clear trigger on when to buy. A break above this line would be a buy signal and traders can then place a tight stop under the breakout. For the moment, we need to wait for that break.

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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