2 ASX Stocks for Technical Analysis – IVZ, RFT
Invictus Energy Ltd (ASX: IVZ)
Invictus Energy Ltd is an oil and gas exploration company based in Australia. The Company is focused on energy resources in sub-Saharan Africa and development of Cabora Bassa Project in Zimbabwe that encompasses the Mzarabani Prospect.
Technical Analysis: On the weekly chart, IVZ price witnessed a breakout of the horizontal trendline and sustaining above the trendline. Moreover, the prices are trading above the trend-following indicator 21-period SMA, which may act as a support level. Further, the momentum oscillator RSI (14-period) is trading at ~65.248, indicating positive momentum. An important support level for the stock, is placed at AUD 0.1700 while the key resistance level is placed at AUD 0.220.
As per the above-mentioned price action and technical indicators analysis, we can conclude that Invictus Energy Limited is looking technically well-placed on the chart, and investors with a high-risk appetite might consider a ‘Speculative Buy’ position on the stock at the closing price of AUD 0.190, up by ~8.571% as of 23rd March 2022. However, the risk levels are high considering the volatility in market due to global tension.
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.
Weekly Technical Chart – IVZ
Source: REFINITIV
Note: Invictus Energy Ltd (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any recommendation concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.
Rectifier Technologies Limited (ASX: RFT)
Rectifier Technologies Limited operates into designing and manufacturing of power rectifiers, and producer of electronic and specialized magnetic components. RFT operates through four segments: Electronic Components, Industrial Power Supplies, controllers, accessories and complete systems for the power generation, distribution, and defence industries.
Technical Analysis: On the daily chart, RFT prices are trading below the horizontal trend line resistance level and facing the resistance of the same. The momentum oscillator RSI (14-period) is trading at ~58.532 level. However, the prices are trading above the trend-following indicator 21-period and 50-period SMA, which may act as a support level. An important support level for the stock, is placed at AUD 0.055 while the key resistance level is placed at AUD 0.066.
Considering the company’s current price levels with indecisiveness, investing in this stock at such uncertain levels should be taken with a calculated approach; hence a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.061 per share, up by ~3.389%, on 23rd March 2022.
Investors 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 – RFT
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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