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Company Overview: Nufarm Limited (ASX: NUF) is a global agricultural company engaged in the production and distribution of crop protection solutions and seed technologies, supporting farmers in enhancing productivity and sustainability. Kingsgate Consolidated Limited (ASX: KCN) is involved in the exploration, development, and mining of gold and silver deposits, focusing on advancing its mineral projects to production. 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, the ASX All-Ordinaries Index (.AORD) closed in negative territory, mirroring the downturn in U.S. equity markets. The index settled at 8,178.50, marking a 2.68% decline for the week ending March 7, 2025. The downturn in domestic indices was primarily influenced by bearish signals from global markets, adding to the prevailing negative sentiment.
From a technical perspective, the index is trading below the rising trendline, indicating a loss of upward momentum while maintaining resistance at this level. Furthermore, prices remain below the 50-period Simple Moving Average (SMA), reinforcing it as a key resistance zone. This suggests that the index may face continued selling pressure unless a breakout above these resistance levels occurs. The upcoming macroeconomic events that may impact the market sentiments include an update on the AU Westpac Consumer Sentiment, US CPI m/m, and US Unemployment Insurance Claims, etc., released weekly.
Global Markets Wrap-Up
Wall Street indices closed in negative territory last week, extending their declines amid broader market weakness. The S&P 500 settled at 5,770.20, posting a weekly loss of approximately 3.09%, while the NASDAQ Composite Index dropped 3.45% to close at 18,196.22 for the week ending March 7, 2025. Meanwhile, U.S. labor market data showed some improvement, as seasonally adjusted initial unemployment insurance claims fell by 21,000 to 221,000 for the week ending March 1, 2025. This marked a decline from the revised 242,000 claims reported in the prior week, according to data from the U.S. Department of Labor.
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 Nufarm Limited (ASX: NUF) and Kingsgate Consolidated Limited (ASX: KCN) for the next 2-4 weeks duration:-
Nufarm Limited (ASX: NUF)
Noted below are the key price indicators for the stock:
Price Action Analysis (on the Daily Chart)
On the daily chart, NUF prices are holding support above the falling trendline breakout level, signalling potential upward momentum. Since the breakout, the stock has consistently maintained this support zone, strengthening the case for further gains. Currently, NUF is approaching its next resistance level at AUD 4.40, a key hurdle in the short term (2-4 weeks). A successful breakout above this level, especially with strong trading volumes, could attract additional buying interest, potentially driving prices toward the next target at AUD 4.70.
Technical Indicators Analysis (On the Daily Chart)
On the daily chart, the 14-period Relative Strength Index (RSI) is in the positive zone at approximately 58.18, indicating bullish price momentum. Volume analysis also reflects a positive outlook, with increasing trading activity reinforcing investor confidence. Additionally, the stock is trading above the 21-period Simple Moving Average (SMA), a key trend-following indicator.
General Recommendation:
As per the above-mentioned price action and technical indicators analysis, Nufarm 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. Nufarm Limited (ASX: NUF) was last covered in a report dated '04 December 2024'. Summary of recommendation is as follows:
Kingsgate Consolidated Limited (ASX: KCN)
Noted below are the key price indicators for the stock:
Price Action Analysis (on the Daily Chart)
On the daily chart, KCN prices are holding above the downward-sloping trendline support, signalling potential upside momentum. The stock has consistently maintained this level, reinforcing the possibility of continued strength. Currently, KCN is approaching its next resistance at AUD 1.65, a key level it may test in the short term (2-4 weeks). A decisive breakout above AUD 1.65, especially with strong trading volumes, could attract further buying interest, potentially driving prices toward the next target at AUD 1.78.
Technical Indicators Analysis (On the Daily Chart)
On the daily chart, the 14-period Relative Strength Index (RSI) is in the positive zone at approximately 60.97, signalling strong bullish momentum. Additionally, weekly volume trends appear supportive of the ongoing upside movement, reinforcing investor confidence and sustained buying interest. Furthermore, the stock is trading above the 50-period Simple Moving Average (SMA), a key trend indicator that now serves as a crucial support level.
General Recommendation:
As per the above-mentioned price action and technical indicators analysis, Kingsgate Consolidated 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. Kingsgate Consolidated Limited (ASX: KCN) was last covered in a report dated '14 October 2024'. 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 March 10, 2025. 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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Past performance is not a reliable indicator of future performance.
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