Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of Quadrise Fuels International Plc (LON: QFI) are up 72% this year but are trading at a major resistance level, as shown on the weekly chart below. Can they break above the level and rally higher?
The company’s shares have witnessed massive spikes after the company signed a deal with global shipping company MSC to conduct a trial of its MSAR® technology that produces clean synthetic fuels to replace the heavy oils used in bulk shipping vessels.
Quadrise is set to start the trial in H2 2021 after completing the project roadmap definition in Q2. This trial project's success will position Quadrise very strongly as a great alternative to the traditional heavy oils used in the global shipping industry.
A break above the resistance level could initiate a new rally to highs, which were last hit in 2019 when the company’s shares traded at almost 8p, but this could unfold over several months unless we get a significant positive catalyst that triggers a spike in the company’s share price.
Quadrise Fuels is set to benefit from the implementation of the rules on ships’ carbon emissions proposed by the International Maritime Organization (IMO), which could come into effect by October 2022.
The chances of a break above the resistance level are quite high, but the timing is uncertain. I would wait for a break and retest of the level before opening a new bullish trade.
We cannot rule out the chances that the level will hold, and the price will pull back and head lower. This would invalidate the above trade idea by increasing the time it takes to break above the level. I’m long-term bullish on the stock.*
*This is not investment advice.
Quadrise Fuels share price.
Quadrise Fuels shares are up 72% in 2021 but are at a crucial resistance level. Can they break above it?
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