Paladin Energy On The Up

This story features PALADIN ENERGY LIMITED. For more info SHARE ANALYSIS: PDN

By Michael Gable 

Share markets here and in the US have now almost eliminated the losses seen at the start of this month. Despite the recession fears, the US dollar has continued to slide as expected, which again shows that we are not seeing a flight into safety.

The US Federal Reserve Chairman Jerome Powell has also all but confirmed interest rates will be cut in a few weeks from now. As noted in some of our prior reports, all of this is a positive for the market in general, let alone technology, property, gold, and general commodities.

Today’s technical view is on uranium producer Paladin Energy ((PDN)).

We have looked at PDN on a few occasions in late 2023 and early 2024 and the stock did well until peaking in May.

The $10 area was always a large area of resistance and then support, and the recent correction has seen PDN come right back to that very important area.

Apart from some bullish divergence on the RSI, we have now seen it put in a double bottom near support (arrows), followed by a strong move higher yesterday on big volume.

PDN has now put in a new low as it prepares for a new move higher. Current levels are a buying opportunity; however, more conservative investors may wish to wait for it to first break above $11.00 which is the next line of resistance.

It should then go on to retest the old high near $18.00. A break of that would then have us targeting levels closer to $30. Initial stops can be placed just under $9.50.

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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