Stanmore Resources Destined For $4?

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This story features STANMORE RESOURCES LIMITED.
For more info SHARE ANALYSIS: SMR
The company is included in ASX300 and ALL-ORDS

Fairmont Equities' Michael Gable suggests Stanmore Resources' shares seem destined to rally towards $4 from below $3 today.

By Michael Gable

US markets were closed overnight, but futures have been lower due to the latest round of tariff threats. The safe haven once again is in hard assets such as precious and base metals, and energy.

Speaking of energy, oil prices continue to hold in well, coal stocks are starting to break higher, and uranium is about to, in our opinion, replicate what we have recently seen in the silver market.

That is, get ready for a big move very soon.

Having said all that, if we look again at US markets, it has been clear for several weeks now that although the major indices are treading water, there is a lot of rotation happening under the surface.

As the “MAG 7” ease back, the funds are flowing into smaller cap stocks.

Today, we offer a technical view on Stanmore Resources ((SMR)).

We last looked at SMR on 25 November when it was trading at $2.13, and made the following comment:

“A daily close above $2.30 would be the buy trigger and we would then expect it to rally to the high $2’s.”

Having made the rally, the stock is now consolidating just under the downtrend line that had been in place since early 2024.

It is consolidating in a way that we believe will shortly lead to an upside breakout and another rally.

SMR is therefore a buy here.

However, more conservative investors may wish to wait for a daily close above $3.00.

We expect the shares to go on and retest the recent peak near $4.00. Initial stops can be considered back near $2.60.

Technical limitations

If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

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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