Breaking Out is a technical analysis-fuelled, short ‘n’ sharp take on chart-busting ASX stocks. Each week, Steve Collette – head of Collette Capital in Melbourne – narrows in on something that’s caught his eye.

Bellevue Gold (ASX:BGL)

Gold continues to make all-time highs with a lack of associated fanfare.

With the very best names already at new highs in the current environment, we are entertaining laggards with the potential to play catch up provided liquidity is not sacrificed.

One such name is Bellevue.

A $150 million capital raising in late July at $1.55 per share savaged the price at that time.

After announcing the raise, the stock opened below that value and did not recover until this week, hitting a low of $1.095 in the interim.

This price action created a basing formation to be completed from ~$1.46, a full 9c below the equity raising level.

After taking the bulk of 3 months to complete said base – with the gold price appreciating in the background – BGL finally pushed on to levels above $1.50 this week and at the time of writing is trading at $1.61.

The 200-day moving average is at $1.59 – and a close above this level would add further fuel to the recovery in the short term.

Perhaps the most attractive further attribute of this chart is that we are still operating within a giant gap all the way up to $1.75 – and these gaps like to fill.

Should the stock move beyond $1.75 one might entertain a retest of all time highs above 200c.

 

Bellevue Gold stock chart
Bellevue Gold has recovered from its post-raising dumps. Pic: Bloomberg

Collette Capital offers IMA services to wholesale clients only. 

The IMA has returned 18.41% p.a. net of any fees as at end September 2024 since January 2015. 

Learn more at www.collette.capital

Collette Capital is a Corporate Authorised Representative (CAR: 128443) of  Sanlam Private Wealth ( AFSL 337927 ), and only provides general advice. 

Collette Capital advise that they and persons associated with them may have an interest in the above securities.

The views, information, or opinions expressed in the interviews in this article are solely those of the contributing author and do not represent the views of Stockhead. Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.