Mid-Cap

2 AX Stocks for Technical Analysis – WOR, FDV

May 11, 2022 | Team Kalkine
2 AX Stocks for Technical Analysis – WOR, FDV

 

Worley Ltd. (ASX: WOR)

Worley Limited is one of the leading global providers of asset services and professional project in the energy, chemicals, and resources sector. It also supports digital, supply chain, construction management, capable of reducing emissions and moving towards a low carbon future.

Technical Analysis: On the quarterly chart, WOR prices broke the downward sloping trend line by upside and the prices are sustaining above the breakout level recently. Moreover, the momentum oscillator RSI (14-period) is trading at ~52.53, indicating positive price momentum in the stock. Further, the prices are trading above the trend-following indicators 21-period SMA on a quarterly chart, which also support our bullish stance for the stock. An important support level for the stock is placed at AUD 12.414 while the key resistance level is placed at AUD 16.240.

Considering the company’s current price levels with upside trend line resistance breakout, momentum indicator analysis, it is prudent to invest in this stock at closing price levels; hence a ‘Speculative Buy’ stance is suggested. The stock was analysed as per the closing price of AUD 13.860 per share on 10th May 2022, down ~2.12%.

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

Quarterly Technical Chart – WOR

Source: REFINITIV

Frontier Digital Ventures Ltd. (ASX: FDV)

Frontier Digital Ventures Limited invests and operates online classified business in undeveloped and emerging countries. Its focus is on properties, automotive and general classified.

Technical Analysis: On the monthly chart, FDV prices witnessed significant downside in the past several months. However, prices are now getting support of the downward sloping trend line that indicates prices might reverse from key supporting levels in the coming period. Moreover, the momentum oscillator RSI (14-period) is trading at ~42.25, indicating moderate price momentum in the stock. Prices are also trading near to its 138.2% golden Fibonacci extension supply ratio that further support our bullish stance in the stock. An important support level for the stock, is placed at AUD 0.897 while the key resistance level is placed at AUD 1.214.

Considering the company’s current price levels trading near to support level and trading near to Fibonacci extension supply zone, it is prudent to invest in this stock at closing price levels; hence a ‘Speculative Buy’ stance is suggested. The stock was analysed as per the closing price of AUD 1.005 per share on 10th May 2022, down ~7.37%.

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

Monthly Technical Chart – FDV

Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where the stock prices tend to find resistance when they are rising, and the uptrend may pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period, prices are currently in a bullish trend (Vice – Versa).

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 50-period, prices are currently in a bullish trend (Vice – Versa).

The Yellow colour line represents the Trendline.

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period), which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status, while a reading of 30 or below suggests an oversold status.


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