DRE 2.13% 4.6¢ dreadnought resources ltd

The waiting continues. And we wait willingly, because the...

  1. 628 Posts.
    lightbulb Created with Sketch. 6107
    The waiting continues. And we wait willingly, because the company moves from strength to strength while these fundamental changes for the positive are yet to be realised in the share price. @Fourwins asked for an update, and its been a while. The company is on the up, then market is on the down. Macro fundamentals outweigh any company fundamentals thus far. Meaningful assay results (in a market with a fixation on REE) should shine the spotlight on DRE and could potentially rerate us in such a way that takes most by surprise.

    Lets take a look at our technical position, knowing as always that any news, both from a company fundamental source or a broader market / world macro source will be the driver here. In the absence of news, or perhaps more accurately, in the absence of news that is not in harmony with the technical picture, the share price will be governed by such news.

    For comparison, initial primary analysis can be read here. (08/02:22)
    Minor updates can be read here (01/03/22) and here

    You can easily see our range and boundaries here: 38.2% is the upper and 61.8% and e21 for the lower. Both the e21 and the 61.8 are very strong support and resistance levels, so having both of them coincide together as our lower resistance is a very solid base. This is why we bounced so aggressively both times when the price touched the 61.8%(1), particularly the second time when it tagged the e21 and left that huge long wick(2). Those who bought into that sell off knew exactly what they were doing.
    Broadly speaking, DRE has held up well in the current market. Floggo pointed out yesterday that with the broader market wide security sell off DRE is sitting steady and that is a good indication of how we are tracking. I agree. We've got a volatile little range here, which traders could take advantage of easily, but we aren't losing ground, and in this climate that's definitely a big win. This is 11 months long, which will only add significant fuel to the fire when a critical inflection point is realised. In the right circumstances, we should bust out of our range like we just invented the cattle prod.
    Comparing my fib here to the one in Feb, you may notice that 'B' has been adjusted slightly. I feel that this fib now needs to stand on its own merits, too much time has passed for the prior fib (shown in pink in prior analysis) to extend to D2. As such the new 'B' now more accurately represents the most recent major swings. This puts our current initial technical target at 161.8% - 9.1c with some resistance(profit taking) to get through at 8c
    When a price rises, it's easy to tell what people think about the company. In a ranging market that looks to be going sideways, it's our moving averages gives us a better picture of the general sentiment. Even though we've been stuck in this range for nearly a year now, our MA indicate we are still on an upward trajectory. In addition, the main volume events are generally associated with price rises. The moving averages indicate we are still primed for a run higher. What we do need to see following an initial breakout, as was pointed out in prior analysis, is the confirmation that the 38.2% fib currently as resistance has become the new support. This will show in the form of a bounce. An example of what the price action could look like is shown in the green. Ideally this will be visible on the daily chart over a week or so, rather than a weekly chart taking several months. Once this bounce takes place we are on our way to 9c.
    I won't iinclude the daily this time, simply because there is nothing that it can add to the larger picture. It is, from a technical point of view, ready for a major breakout in either direction. This is primarily a result of the long term ranging conditions we have been in.

    From this analysis It is my view that if you are holding, continuing to hold will increase your profits. If you are looking to buy before the re-rate then anywhere around the weekly yellow e21 would be good. Best is below the 50% fib, however you run the very real risk of missing the boat should more news drop before hand. A conservative entry is to wait for for the breakout and retest of the 38.2% as the new support, however should exceptional news drop you also risk missing the boat, for a retest is not a requirement. Exceptional news could propel us instantly to an entirely new technical level with new support levels, leaving you wanting.

    Looking forward to hearing from Dean today.
    Last edited by Zior: 23/06/22
watchlist Created with Sketch. Add DRE (ASX) to my watchlist
(20min delay)
Mkt cap ! $130.5M
Open High Low Value Volume
4.7¢ 4.8¢ 4.5¢ $236.7K 5.193M

Buyers (Bids)

No. Vol. Price($)
4 940569 4.5¢

Sellers (Offers)

Price($) Vol. No.
4.6¢ 955187 3
View Market Depth
Last trade - 16.10pm 06/07/2022 (20 minute delay) ?
-0.001 ( 4.26 %)
Open High Low Volume
4.7¢ 4.7¢ 4.4¢ 2246280
Last updated 14.37pm 06/07/2022 (live) ?
DRE (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.