Uptrend Resumes For Sandfire Resources Shares

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This story features SANDFIRE RESOURCES LIMITED.
For more info SHARE ANALYSIS: SFR
The company is included in ASX100, ASX200, ASX300 and ALL-ORDS

Sandfire Resources has broken above major resistance near $18 following a period of consolidation, Fairmont Equities' Michael Gable reports.

By Michael Gable 

The Australian share market didn’t make any progress in the past week, but US markets continue to push higher.

It is a classic example of how markets don’t just move on company fundamentals alone.

Money flow and positioning can make a huge difference over various time frames, especially the short-term.

A few of the US tech stocks which are pushing markets higher are looking a bit vertical so we still think that dabbling in tech is a bit high risk at the moment.

Either you have US tech stocks very extended, or you have local tech stocks which are clearly churning around lower levels and look like being vulnerable to more selling pressure.

As US tech companies move from being very capital-lite to spending huge amounts on data centres and chips, we can gain exposure to that growth by owning the commodities and the energy that they will demand instead of the expensive tech companies themselves.

This is where we continue to see the opportunity in our local share market, which is stuck in a bit of a range at the moment. 

Today, we offer a technical view on Sandfire Resources ((SFR)).

Sandfire had trended well for the past couple of years, peaking in late-January.

It then fell away for a couple of months, but that consolidation now appears to be over.

We have seen Sandfire form a couple of higher highs and higher lows since March and it has now pushed beyond a major resistance line near $18.

Sandfire is a buy here, as we expect the stock to continue trending higher again 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

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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