Company Overview: Corporate Travel Management Limited (ASX: CTD) is an Australia-based company that provides travel management solutions and manages the purchase and delivery of travel services for the corporate market worldwide. Lovisa Holdings Limited (ASX: LOV) is a fast fashion jewellery retailer, primarily engaged in the retail sale of fashion jewellery and accessories for women. This Report covers the Price Action, Technical Indicators Analysis along with the Stop Loss Levels, Target Prices, and Recommendations on these two stocks.
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 7014.20 with a gain of 2.29% for the week ending November 03, 2023. 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 below the rising trendline and are facing resistance from the trendline. Moreover, the prices are trading below the 21-period & 50-period SMAs, which may act as a resistance level for the index. The upcoming macroeconomic events that may impact the market sentiments include an update on the AU RBA Rate Statement, US Trade Balance, and US Unemployment Insurance 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 4358.34 with a gain of ~4.60%, while NASDAQ Composite Index settled at 13478.28 with a gain of ~6.61% for the week ending November 03, 2023. The seasonally adjusted initial US unemployment insurance claims data published by the US Department of Labor increased by 5k to 217k for the week ending 28 October 2023 against the revised Unemployment Insurance Claims at 212k 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 two ASX-listed stocks from the technical standpoint. Noted below recommendations are based on entry price, target prices, and stop-loss for Corporate Travel Management Limited (ASX: CTD) and Lovisa Holdings Limited (ASX: LOV) for the next 2-4 weeks duration: -
Corporate Travel Management Limited (ASX: CTD)
Noted below are the key price indicators for the stock:
Price Action Analysis (on the Daily Chart)
On the daily chart, CTD’s prices are sustaining above the downward sloping 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 19.70 and in the short term (2-4 weeks), prices may test this level. An upside movement above AUD 19.70 level supported by volumes may extend buying in the stock to AUD 21.00 level.
Technical Indicators Analysis (On the Daily Chart)
On the daily chart, RSI (14-period) is moving in a positive zone and showing a reading of ~58.68 level, indicating positive price momentum. Volume analysis shows a positive signal for stock prices. Moreover, the CMP is moving above the trend following indicators 21-period & 50-period SMAs, which may act as the support levels.
General Recommendation:
As per the above-mentioned price action and technical indicators analysis, Corporate Travel Management 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. Corporate Travel Management Limited (ASX: CTD) was last covered in a report dated '05 October 2023'. Summary of recommendation is as follows:
Lovisa Holdings Limited (ASX: LOV)
Noted below are the key price indicators for the stock:
Price Action Analysis (on the Daily Chart)
On the daily chart, LOV’s prices are trading above the falling trendline support level and continuously taking support from the trendline, indicating the possibility of a further upside hereon. Now the stock is heading toward its next resistance level at AUD 22.10 and in the short term (2-4 weeks), prices may test this level. An upside movement above AUD 22.10 level supported by volumes may extend buying in the stock to AUD 23.60 level.