Deep Yellow: Uranium Upswing

This story features DEEP YELLOW LIMITED. For more info SHARE ANALYSIS: DYL

By Michael Gable 

The US market continues to sit around its 200-day moving average, give or take a few points, and the Australian market is looking very stretched and tired up here.

This week, we will most likely get another rate rise in the US. Markets are expecting 25 basis points, but 50 basis points is not out of the question. We are now looking to this event as potentially the next catalyst for markets to make a new move either higher or lower.

Because of this, finding new opportunities up at these levels in the large caps is fairly difficult. Stocks look extended and we don't have many reliable set-ups to initiate new trades.

However, there is still some movement in the small-cap space, and this week we have analysed the chart of Deep Yellow ((DYL)).

After falling sharply at the end of 2022, we can see that DYL started to round out a base. Volume came back into the stock in January and it has been trending higher these past few weeks.

Yesterday saw it break a key resistance level on higher volume (circled). This is a new buy signal and DYL should continue higher from here. Initial stops can be considered near 80c. Nearby resistance is likely to be at 90c and then at $1.00.

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.
 

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

FNArena is proud about its track record and past achievements: Ten Years On

Click to view our Glossary of Financial Terms