Northern Star Poised For Technical Break Out

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This story features NORTHERN STAR RESOURCES LIMITED.
For more info SHARE ANALYSIS: NST
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Northern Star Resources' share price is approaching a potential technical breakout, Fairmont Equities' Michael Gable reports.

By Michael Gable 

We were looking for the interest rate decision in the US last week to the be a potential catalyst for markets.

Although it might not seem like it resulted in much at first glance, we can already see some movements starting to happen on the back of the US Fed keeping rates on hold.

Despite the US 30-year yield heading higher (for now), equity markets have shrugged that off and look to be breaking higher.

What is interesting though, is the move in the US dollar. With the US dollar being sold off, that has some major implications for gold and other commodities.

The US dollar started its rally at the end of January, just as gold peaked (the US dollar and gold are inversely correlated).

The dollar broke to new 52-week highs in June and rallied further, just as our major miners peaked and started to consolidate.

If the US dollar is going to head back lower, and long-term we believe that to be the case anyway, then resources will start to wake up here, ending their recent consolidation.

This means that the second half of 2026 could look very good for metals and miners.

Today, we offer a technical view on Northern Star Resources ((NST))

The decline in Northern Star earlier this year saw the shares come back to the long-term uptrend line which had been in place since 2022.

The range has also been tightening up in the past few months, and this means that Northern star is getting close to making another big move.

Northern Star is a buy at current levels for those looking to get in early and run a tight stop near $17.

Otherwise more conservative investors may wish to wait for a breakout of this tight range, which means waiting for Northern Star to trade above $23.

If Northern Star does indeed break to the upside, then we would be looking for a rally back to levels over $30.

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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