Coronado’s Bounce Off Support An Opportunity

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This story features CORONADO GLOBAL RESOURCES INC.
For more info SHARE ANALYSIS: CRN
The company is included in ALL-ORDS

Shares in Coronado Resources have retested support post a two-week rally and since moved higher. Fairmont Equities' Michael Gable sees an opportunity.

By Michael Gable 

In the past week we have seen markets price in a short outcome to the Iranian war, to something a bit uglier, and then overnight it has seen the extreme fear ease off again.

Unless you are a trader looking to use liquidity both up and down to sell or buy, it is often best to let the volatility in an event like this die down first.

Obviously, we have been bullish on oil for the past few months and recent events have accelerated its move upwards.

But the volatility on news headlines makes it hard to initiate new positions if you are not already invested.

Oil stocks are likely to be down again today and we haven’t seen an end to the big movements yet.

Ultimately, events will die down and the fear will ease further at some point.

However, oil was heading higher before the war. All the war has done is highlight how fragile supply is and how the world is completely unprepared and lacking the investment in energy security.

The only way to incentivise new supply is through higher prices, and this will translate to all major forms of energy – oil, coal, and uranium.

Today we offer a technical view on Coronado Global Resources ((CRN))

We last looked at Coronado and noted the breakout from the bull-flag (diagonal blue lines) was a buying opportunity.

After rallying for a couple of weeks, the stock then fell back to retest support before bouncing again in the past few days.

This provides investors with another buying opportunity.

Coronado remains a buy here and we expect a rally up towards the 70c-80c area. Initial stops can be considered near 25c.

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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