Is $5 The Next Target For New Hope Shares?

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This story features NEW HOPE CORPORATION LIMITED.
For more info SHARE ANALYSIS: NHC
The company is included in ASX200, ASX300 and ALL-ORDS

Fairmont Equities' Michael Gable continues to favour energy stocks with New Hope back in focus after a recent share price pullback.

By Michael Gable 

Today is possibly the day the RBA raises interest rates, where the probabilities of such an outcome increased last week on poor CPI numbers for December.

If the Australian economy can’t grow by much more than 2% without triggering inflation, then it will make it tougher to find opportunities in domestic companies.

Luckily for our market, we have a range of stocks (resources) which are heavily reliant on exporting to the rest of the world.

Speaking of resources, the last few days has seen some large moves, but this is the price of admission.

If the price of gold is going to rally from about US$4600 to US$5600 in only eight days, then you can’t be surprised if it is going to come back to US$4600 fairly quickly.

We are still expecting precious and base metals to do well throughout the year, but they will, of course, have dips along the way.

This is where investors need to buy closer to consolidation points and not chase stocks, and then run a trailing stop to ensure you are keeping the bulk of those profits.

One sector which has held up very well since the start of the year is energy.

We have been mentioning for weeks now that energy is the next sector to pick up the baton and run hard.

Although our top pick is uranium, oil and coal stocks should do very well in 2026.

Today we offer a technical view on New Hope ((NHC))

It was only two weeks ago we last looked at New Hope and noted it was breaking a long-term downtrend line and that made it a buying opportunity.

Since then, it rallied slightly before coming back to retest the breakout.

This gives investors one more chance to buy New Hope before it stages a swift rally to higher levels.

New Hope is a buy here and we expect it to rally to the high $5’s before hitting major resistance, at that stage we can reassess.

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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