Technicals | 11:15 AM
By Michael Gable
From a share market perspective, the topic of the day is uranium.
We looked at the chart a few weeks ago and noted it appeared to be heading higher, but it needed to overcome some hurdles.
In last week’s report, apart from making a passing comment that oil was heading higher, we took a look at some more uranium stocks, with uranium being a sector we believe can do extremely well this year.
Well, the beach ball (an analogy for the uranium stocks) has been pushed under the water for too long in the past several months and the hand holding it down has now been taken away.
Today, we offer a technical view on Betashares Global Uranium ETF ((URMN))
Our latest comment on Betashares Global Uranium ETF was on 27 May, where we noted:
“This breakout is a buying opportunity and we expect Betashares Global Uranium ETF to rally higher from here. Because the correction had taken so long, we expect the rally to last a number of months and eventually take this ETF to new highs. There will be resistance along the way near $9 and $11. Initial stops can be considered near $7”.
Betashares Global Uranium ETF drifted sideways for several days after our report but yesterday it got a move on with strong volumes.
URNM remains a buying opportunity right now and it should still push on to new highs.
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
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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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