Company Overview: Navigator Global Investments Limited (ASX: NGI) is an asset management company catering investors globally by providing investment management products and services through Lighthouse Investment Partners, LLC (Lighthouse) (wholly owned subsidiary) and six other alternative asset management companies. Below are the key price indicators for the stock: This Report covers the Price Action, Technical Indicators Analysis along with the Stop Loss Levels, Target Prices, and Recommendation on this one stock.
ASX All Ordinaries Index (.AORD) Market Round-Up
Last week, ASX All-Ordinaries Index (.AORD) settled on a positive note, following the positive move from the US equity markets. Notably, .AORD settled at 7730.50 with a gain of 0.16% for the week ending January 12, 2024. The recent move in the domestic indices is majorly led by the bullish indications from the global equity markets.
On the technical front, the prices are trading above the falling trendline and are taking the support from the trendline. Moreover, the prices are trading above the 21-period & 50-period SMAs, which may act as a support level for the index. The upcoming macroeconomic events that may impact the market sentiments include an update on the AU Unemployment Rate, US Retail Sales m/m, and US Unemployment Claims, etc., released weekly.
Global Markets Wrap-Up
Wall Street indices inched higher in the last week and settled on a positive note. Notably, S&P 500 settled at 4783.83 with a gain of ~1.84%, while NASDAQ Composite Index settled at 14972.76 with a gain of ~3.09% for the week ending January 12, 2024. The seasonally adjusted initial US unemployment insurance claims data published by the US Department of Labor decreased by 1k to 202k for the week ending 06 January 2024 against the revised Unemployment Insurance Claims at 203k in the prior week.
Having understood the US market performance over the past week, taking cues from major global news, and based on technical analysis of the ASX All-Ordinaries Index (.AORD) for the upcoming week, now let us have a look at one ASX-listed stock from the technical standpoint. Noted below recommendation is based on entry price, target prices, and stop-loss for Navigator Global Investments Limited (ASX: NGI) for the next 2-4 weeks duration: -
Navigator Global Investments Limited (ASX: NGI)
Noted below are the key price indicators for the stock:
Price Action Analysis (on the Weekly Chart)
On the weekly chart, NGI’s prices are trading above the falling trendline breakout level, indicating an upside movement. Since then, prices are continuously sustaining above the trendline support zone, indicating the possibility of a further upside hereon. Now the stock is heading toward its next resistance level at AUD 1.566 and in the short term (2-4 weeks), prices may test this level. An upside movement above AUD 1.566 level supported by volumes may extend buying in the stock to AUD 1.700 level.
Technical Indicators Analysis (On the Weekly Chart)
On the weekly chart, RSI (14-period) is showing a reading of ~62.04 level, indicating positive price momentum. Volume analysis shows a positive signal for stock prices. Further, the stock is trading above 21-period & 50-period SMAs, which may act as a support level.
General Recommendation:
As per the above-mentioned price action and technical indicators analysis, Navigator Global Investments Limited is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decision should be made depending on an individual’s appetite for an upside potential, risks, and any previous holdings. This recommendation is purely based on technical indicator analysis, and fundamental analysis has not been considered in this report. Navigator Global Investments Limited (ASX: NGI) was last covered in a report dated '14 June 2023'. Summary of recommendation is as follows:
Markets are trading in a highly volatile zone currently due to certain macro-economic and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Upcoming Major Global Economic Events
Market events occur on a day-to-day basis depending on the frequency of the data and generally include update on employment, inflation, GDP, consumer sentiments, etc. Noted below are the upcoming week's major global economic events that could impact the ASX All-Ordinaries Index and listed stocks’ prices:
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.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2:Individuals can consider exiting from the stock if the Target Price mentioned as per the technical analysis has been achieved and subject to the factors discussed above.
Note3: How to Read the Charts?
The Green colour line reflects the 21-period moving average while the red line indicates the 50-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.
The Black 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.
The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume. Liquidity in stocks helps in easier and faster execution of the order.
The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.
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.
Risk Reward Ratio: Risk reward ratio is the difference between an entry point to a stop loss and profit level. This report is based on ~60% Stop Loss of the Target 1 from the entry point.
A trailing stop-loss is a modification of stop-loss in case of favourable movement in the price to protect the gains. Individuals can Trail the Stop-Loss as per the aforementioned levels if the stock price achieves more than 50% of the Target 1.Individuals should consider exiting from the position as per the Trailing Stop-Loss level if the price starts moving downwards after achieving more than 50% of the Target 1.
The reference date for all price data, currency, technical indicators, support, and resistance levels is January 15, 2024. The reference data in this report has been partly sourced from REFINITIV.
Abbreviations
CMP: Current Market Price
SMA: Simple Moving Average
AUD: Australian Dollar
RSI: Relative Strength Index
Note: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.
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