Pilbara Minerals Limited (ASX: PLS)
Pilbara Minerals Limited is an Australia-based mining and exploration company. The Company is focused on the Pilbara region of Western Australia. The current market capitalization as of 29th November 2022 stood at AUD 13.23bn.
Recent Development: On November 28, 2022, PLS executed a Joint Venture (JV) agreement with Calix for the development of a Demonstration plant located at its Pilgangoora Project using Calix’s patented calcination for producing lithium salts. The JV is intended to reduce production cost, lower carbon energy intensity, and waste reduction. The final investment decision is targeted by the June quarter of 2023. Both companies will begin feasibility studies and have commenced the market engagement program post-completion of test work in October 2022.
Technical Analysis: On the weekly chart, PLS prices are trading above the rising trendline support level, indicating the possibility of upside movement hereon. Moreover, the momentum oscillator RSI (14-period) is in positive territory and shows a reading of ~55.651 level. Further, the prices are trading above the trend-following indicators 21- period SMA and 50- period SMA, which may act as support zone. An important support level for the stock is placed at AUD 4.10, while the key resistance level is placed at AUD 5.00.
Considering the company’s current price levels are sustaining above the trendline support zone, momentum oscillator analysis, it is prudent to recommend a 'Speculative Buy' rating on this stock. The stock was analyzed as per the closing price of AUD 4.49 per share on 29th November 2022, up ~1.583%.
Weekly Technical Chart – PLS
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Far East Gold Ltd (ASX: FEG)
Far East Gold Ltd is an Australia-based company engaged in the exploration of gold and copper. FEG holds a market capitalization of AUD 129.49mn as of 29th November 2022.
Technical Analysis: On the daily chart, FEG prices are trading below the falling trendline resistance level and facing resistance of the same. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~45.196 level. Further, the prices are trading below the trend-following indicators 50- period SMA, which may act as resistance zone. An important support level for the stock is placed at AUD 0.51, while the key resistance level is placed at AUD 0.63.
Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest, taking into consideration the risk-reward scenario.
Considering the company’s current price levels are sustaining below the downward sloping trend, momentum oscillator analysis, it is prudent to recommend a 'Watch' rating on this stock. The stock was analyzed as per the closing price of AUD 0.57 per share on 29th November 2022, down ~5.0%.
Daily Technical Chart – FEG
Evolution Energy Minerals Limited (ASX: EV1)
Evolution Energy Minerals Limited (ASX: EV1) is a mining and exploration company and its principal asset is the Chilalo Project, located in south-east Tanzania.
Technical Analysis: On the daily chart, EV1’s stock prices are facing the resistance of the horizontal resistance line on the upside, indicating the possibility of a downward move hereon. Moreover, RSI (14-period) is trading below the midpoint and showing a reading of 38.695 and supporting a downside movement. The prices are trading below the trend-following indicators 21-period and 50-period SMA, which may act as a resistance level for the stock. An important support level for the stock is placed at AUD 0.210 while the key resistance level is placed at AUD 0.270.
Considering the company’s current price levels facing resistance at the horizontal resistance line, momentum oscillator analysis, therefore a ‘Watch’ recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.235 per share, as on 29th November 2022, down by ~2.083%.
Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest, taking into consideration the risk-reward scenario.
Daily Technical Chart – EV1
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report.
Note 3: Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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 Orange/ 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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