Sandfire’s Inverse-Head-And-Shoulders

This story features SANDFIRE RESOURCES LIMITED. For more info SHARE ANALYSIS: SFR

By Michael Gable 

Share markets continue to look strong here with the S&P500 and the S&P/ASX200 indices breaking to new highs.

Some investors get scared when markets make new highs, but history has shown that making new highs is a positive and is essential if markets are to trend higher.

Our view remains that dips are a buying opportunity until something causes us to change our minds.

Today, we offer a technical view on Sandfire Resources ((SFR)).

After peaking in May, SFR then eased back for a few weeks before trading sideways to further consolidate against the strong rally that was seen earlier in the year.

This sideways price action from the past few months is now resembling an inverse-head-and-shoulders.

This is a positive sign, and price action from the past few days has looked very bullish. It therefore looks like SFR is breaking free from this consolidation and it is starting a new uptrend which should take it to new highs.

However, there will be some light resistance near $10. Current levels 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 (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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