Dyno Nobel Clears Major Technical Hurdle

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

Dyno Nobel shares have broken above long-standing resistance after a six-month consolidation, Fairmont Equities' Michael Gable reports.

By Michael Gable

US tech stocks took a tumble on Friday night, as stronger-than-expected jobs numbers have raised the prospects of interest rate rises in the US.

It was noticeable, however, to see weakness in almost all other areas of the market as well, which is typically a sign of general deleveraging across the board.

Hostilities in Iran resurfaced and it once again backs up our view that the Iranians don’t want or don’t need a “deal” and that the regular flow of oil will be years away – if at all.

The Australian market is also likely to see some broad-based selling for a short period of time.

However, when we look at the trends beyond the short-term, we can logically figure out where we need to be.

We have rising inflation and interest rates. We have restricted oil supply, which leads to restrictions in commodities.

We have a lot of debt, so if short-term rates can’t be lowered, then the US Fed will need to buy back longer-dated bonds to get the long-term rates down.

High P/E tech stocks will suffer because of uncertainty and high rates.

The US dollar will weaken, commodities will become more valuable, and energy will get more expensive.

So, looking beyond the next few days, we are confident that the sectors that we are bullish on –materials and energy– will recover and will go back to trending higher again.

Today, we offer a technical view on Dyno Nobel ((DNL)) 

Dyno Nobel spent most of 2025 trending higher.

Then from November to May, it traded sideways to consolidate, forming resistance near $3.50.

It broke higher in mid-May, came back to retest it, and is now on the way back again.

We expect Dyno Nobel to trend higher from here and current levels are a buying opportunity.

Initial stops can be considered just under $3.50.

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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