Technicals | Jan 17 2023
This story features GRANGE RESOURCES LIMITED. For more info SHARE ANALYSIS: GRR
By Michael Gable
The US CPI numbers last week came in as expected, and they continue to show a drop in inflation. The 2- year yields are indicating that rate rises (despite the rhetoric from the US Fed Reserve) are almost done and all of this is positive for markets.
However, the S&P500 Index is sitting at major resistance here and we still haven't seen an upside break or a sharp sell-off yet to give us a clue as to what the next move is.
The Australian market is also back to retest the December high. Not only that, but it did so with a V-shaped reversal that has left it overbought in the short-term. Ideally, we see markets cool off here slightly without coming back too much, and that would set us up for a more reliable move.
Reviewing Grange Resources ((GRR)) from a charting perspective…
GRR appears to have formed a base in the last quarter of 2022. It broke higher in December before easing back to retest the breakout.
The stock has now pushed beyond the December high on strong volume and there is a strong chance that it continues to rally higher from here.
Current levels are a buying opportunity. Traders can consider a tight initial stop near 90c.
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
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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