Incitec Pivot In The Spotlight

Technicals | Apr 05 2022

This story features INCITEC PIVOT LIMITED. For more info SHARE ANALYSIS: IPL

With fertiliser prices soaring due to Russian sanctions, Michael Gable of Fairmont Equities assesses the technicals for Incitec Pivot.

By Michael Gable 

We have reached a stage where share markets here and in the US have recovered most of their recent declines.

Naturally they will need to take a breather from here. However, the strength of the recent bounce is a positive sign. It means that any consolidation here is unlikely to see markets dip back to the lows from several weeks ago. The Australian share market is, for once, outperforming the US, and of course this is because of Australian resources.

It seems as though anything outside of resources is easing back now but the resource stocks haven't got the memo yet. Lithium stocks in particular seem to be extending their run. This week we look at Incitec Pivot ((IPL)).

Our previous comment on the IPL chart on 1 February noted that we were looking at a dip to $3.00 as a better buying opportunity. Since then, it managed to rally off support and break to new highs.

There is some long-term resistance at $4.00, so it is natural to see the share price ease back from those levels. For IPL to make an attempt at breaking through $4.00, this current pullback needs to be fairly shallow.

Ideally, we would like to see IPL ease back towards $3.60 and hold that level. That would then provide the next opportunity to enter IPL. Any sharp falls under $3.60 without a bounce-back would be a negative sign.

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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For more info SHARE ANALYSIS: IPL - INCITEC PIVOT LIMITED