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South32: Buy The Dips

Technicals | Sep 06 2022

This story features SOUTH32 LIMITED. For more info SHARE ANALYSIS: S32

By Michael Gable 

Share markets continue to struggle to make much headway. However, our call two weeks ago to get back into energy stocks is still valid, as oil and coal stocks continue to look the strongest out there at the moment. The S&P 500 Index was closed overnight, but it sits at a major support level, so it remains to be seen if we get a bounce from here.

Until we get confirmation of some market support, the buying opportunities are few and far between. However, we do have analysis today on South32 ((S32)).

We looked at the chart of S32 on 9 August and made the following comment:

"S32 appears to have a low in place for now. It rallied higher at the end of July and took out the previous swing high before easing back again. Yesterday saw it gap higher on good volume. In our minds, this confirms that we should see further upside from here.

"Current levels are a buy if tight stops are used, and we anticipate some resistance to kick in near $4.40".

We can see that S32 has hit resistance and is now easing back. The overall uptrend since the July low is still in place which means any dips back to $4.00 again are a buying opportunity.

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

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


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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