Michael Gable is an expert guest commentator for the stock market newsletter thebull.com.au.
This post is an extract from the newsletter dated 20 February 2017. You can access the full version of the article HERE.
Sandfire has been benefiting from the rise in the copper price and the chart is showing that higher levels are possible. There has been a log of resistance near $6.80 which SFR struggled to get through a few times in the last year. It has now broken above that and we expect that to trigger a new wave of buying. This could see the stock rally to levels over $8.
In the last 12 months, NWH has rallied from 5c to nearly 80c. The way it is trading and building on top of its previous highs indicates that the run is not over yet. Having bounced off recent support near 67c, we now expect it to resume the uptrend here and head towards 90c.
PMV looked to be in trouble a couple of weeks ago but an unexpected announcement from the company on its financial position alleviated concerns and put a rocket under the share price. On a weekly candlestick chart, it has formed a “bullish engulfing pattern” which is a sign that the stock is reversing the slide and ready to head higher. We anticipate levels up towards $15.50 are now a possibility.
Since breaking above some strong resistance at $6, ORG has been sustainably trending higher. It is making a nice series of higher highs and higher lows. The moves up are impulsive and thes back are very corrective. We have a target in the high $8’s and so far it is still on track to achieve that.
The chart for TNE shows that it is in danger of falling further. Since peaking last year, the moves down have been very impulsive and it has now become clear that a head and shoulders has formed. The neckline of this has now broken and the most likely scenario is that TNE continues to fall towards levels under $4.50.
ARB has clearly formed a head and shoulders and a couple of weeks ago we saw the stock breaking below the neckline for the first time. Unless it can quickly recover, we expect it to continue falling towards $14.
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