article 3 months old

South32 Rally Should Resume

Technicals | Apr 24 2018

This story features SOUTH32 LIMITED. For more info SHARE ANALYSIS: S32

By Michael Gable 

Last week saw the S&P/ASX 200 Index return 0.7%, while the materials index and energy index rose 3.4% and 3.1% respectively. For the moment, as we sound like a broken record, the strength is in those sectors, and whilst it might be worth taking profits on select stocks, investors should think about re-entering commodity stocks on any retracement.

Today we look at South32 ((S32)).

S32 seems to have found support near the lows created at the end of last year. Last week we saw it launch off that support level and the shares are now retesting the January high. S32 is likely to congest here and we may see a pullback towards support near $3.60. Once it has consolidated under the January peak, it will then be ready to push on again and trade to a new high.

[Note: This analysis was made prior to today's sharp fall in South32. As we goes to print the stock has already retraced to $3.64 -Ed]

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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S32

For more info SHARE ANALYSIS: S32 - SOUTH32 LIMITED