The share price of Perth-based engineering specialist company SRG Global [ASX:SRG] is up 23.68% at the time of writing, trading at $0.2350.
The uncertainty of COVID-19 brought about change in the company that is being viewed favourably by the market.
What’s taken place at SRG Global…
SRG specialise in civil construction, building and mining. And like all other industries right now, have been unable to escape the impact of COVID-19.
What seems to be interesting about the viral pandemic is the reaction it elicits from each company.
In the case of SRG the response is a slimmed-down business and lower-cost base with the outlook to focus on its core business and customers.
In a recent market update the company announced that it holds $707 million of work in hand and an opportunity pipeline of $6.2 billion.
Coupled with this, the company brought forward an interim dividend payment of 0.5 cents per share for July 30, 2020.
Where to from here for SRG Global?
While conditions remain uncertain during the current pandemic, the situation at SRG is looking stable.
Outlined in the recent announcement are the imminent/near-term contract wins in Asset Services, Specialist Civil and Specialist Facades and Asset Services are expected to return to normal levels of activity in Q1 FY21.
This gives the impression that things are looking good for SRG Global.
Looking at the technical aspect of SRG…
From the low in March, the price bounced off the support level of $0.19, only to return to this level before the current move up. With price now up around the resistance level of $0.23.
Should it continue this move up, then the levels of $0.246 and $0.295 may come into focus. The level of $0.295 being the most recent high back in April may be a tough one to break.
Should the price return to the downside, then the levels of $0.191 and $0.171 may come into focus.
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