A Panoramic view

Stock Watch

by Regina Meani

Market analyst Regina Meani discusses Panoramic Resources (ASX:PAN).

Headquartered in Perth Western Australia, Panoramic Resources (ASX: PAN $0.24) is focused on its 100% owned high quality, long life Savannah underground nickel sulphide mine and processing plant which is located in the East Kimberley region of WA. In April this year the board approved the restart of the Savannah project, a year after suspending operations due to the covid-19 pandemic.

CEO and managing director Victor Rajasooriar said in a statement that production from Savannah is committed until February 2028, or for about half of the current 12-year mine-life. As to be expected the share price closely follows the Nickel price, which continues its strong upward path (see chart below).

The share price for Panoramic has experienced a volatile history from the early 2000s. After peaking at $4.55 in November 2007 the price tumbled into a tumultuous downward path leading to a final low and turning point at 5.6c in February 2016. The price rebounded strongly to break barriers set in place in the early 2000s, to reach combined resistance at 50c in June 2018, becoming a deflection point. Downward volatility resumed taking the price to a higher low at 6.4c in July 2020. The subsequent recovery has followed the Nickel price and momentum conditions suggest that the price may still push higher but may need some breaks in the short term.  

The next main barrier zone for the stock lies between 30c and 36c. Once clear the price would have completed a large base building process with the potential to advance towards the 50c barrier where more consolidation maybe necessary to support the next stage higher towards 80c and $1.00 and possibly beyond. At this stage the basing process would not be threatened unless the price dropped below 15c but a drop to this level places too high a percentage risk. Over the near-term, a drop below 22c would trigger a stop loss for traders with a further fall through 19c perhaps signalling that a pullback phase was underway and may delay the completion of the base but would provide buying opportunities.


Image from: https://panoramicresources.com/

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