Shares of Quadrise Fuels International Plc (LON: QFI) fell 13.4%, extending the latest pullback following the strong rally that began when the company’s shares broke out of the 4p resistance level in late April.
The company, which manufactures synthetic heavy fuel oils for use in the shipping industry and other industries that rely on heavy fuels, has been posting positive updates about the progress of its various project, which pushed its shares higher.
The recent pullback appears like a normal pullback throughout an uptrend, given that the company’s fundamentals have not changed recently.
Quadrise Fuels shares are headed towards the 4p support level that they broke above in late April, and I expect the level to hold.
The company’s technology improved the existing oil-in-water emulsion fuel technology commercialised by Orimulsion® as some of its team members previously worked at Orimulsion®.
Qaurise Fuels is currently running a test programme with MSC Shipmanagement Limited of Cyprus (“MSC”), which could lead to the shipping company using its MSAR fuels on its global fleet generating significant revenues for Quadrise.
The company is also 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.
Investors who are bullish on the company’s prospects should use the recent pullback as a chance to establish new positions in the company or to add to their positions.
There is a high likelihood that the company’s fuels shall be commercially successful given that the company has employees who were part of Orimulsion®, which has successfully commercialised a similar product.
Quadrise Fuels share price.
Quadrise Fuels shares fell 13.41% to trade at 4.615p, dropping from Monday’s closing price of 5.33p.
