Paladin Poised For Another Big Breakout

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This story features PALADIN ENERGY LIMITED.
For more info SHARE ANALYSIS: PDN
The company is included in ASX200, ASX300 and ALL-ORDS

Paladin Energy shares have bounced from recent retracement, now consolidating under the recent high. Fairmont Equities' Michael Gable sees a bullish sign ahead of the next move upwards.

By Michael Gable

By Michael Gable 

Commentary on what happens in the market this week will be dominated by the events in Iran.

Apparently, this war is why yesterday tech stocks went down and oil, gold, and other commodities went up.

Those who have been following our commentary would know this is no different to what has been taking place for weeks now.

So, while yesterday’s movements in the Australian share market seemed to perfectly correlate to what we have been recommending you invest or don’t invest in, we know the war is not causing these movements.

The war is just being used as an excuse by those who have been on the wrong side of the market for weeks now.

If you have been talking endlessly about AI fears being overdone, if you thought gold was a bubble because you saw a line of people lining up at Martin Place to buy some, and that oil was a relic of the past, then “war in Iran” is a neat way to explain why the market is doing what it is doing.

But we know the war will just introduce short-term volatility, and at best just add a few more eyeballs to the trade that has been under everyone’s noses for a while now.

If we look at oil in particular, we have been bullish on that for a few months now and quite simply, this was predicated on a supply/demand imbalance that everybody was underestimating.

And with this, combined with energy stocks at record low valuations and being the most unloved sector out there, energy has the potential to be the most profitable trade of 2026.

We have said that before, and that remains the case now.

Our advice is to continue to look at opportunities with hard assets, and use the volatility to enter positions on any dips because spikes higher on geopolitical news tend to be used by traders to access liquidity to sell into. 

Today, we offer a technical view on Paladin Energy ((PDN)).

Our most recent charting comment on Paladin was on 30 December when it was trading at $9.61.

We noted “it appears days away from breaking out and is therefore a buy right now”.

After rallying to over $14, the stock then pulled back and found support at $11, which is the -50% retracement of the November-January rally.

After bouncing well from there, we can now see it consolidating just under the recent high (circled).

This is a very bullish sign and it shows profit takers are being met with equal amounts of buying support.

Paladin is therefore days away from another significant breakout, which should see it go on and retest levels above $17.

Paladin is therefore a buy here and initial stops can be considered near $12.50.

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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