Australian Vanadium Limited (ASX: AVL)

Australian Vanadium Limited is an Australia-based company, involved in advancing its Australian Vanadium Project. The Company operates through two segments: Exploration and Energy Storage.

Technical Analysis: AVL stock price witnessed a robust rally from the low of AUD 0.034 to a 52-week high of AUD 0.105 tested on March 04, 2022. Moreover, the momentum oscillator RSI (14-period) is trading in an extremely overbought zone at (~86.80 level) on the daily chart, which might indicate the possibility of a downside correction from the higher levels. However, the prices are trading above the trend-following indicators 21-period SMA and 50-period SMA, which may act as crucial support zone. An important support level for the stock, is placed at AUD 0.090 while the key resistance level is placed at AUD 0.125.

Considering the company’s current price levels trading at higher levels with RSI in overbought zone, investing in this stock at such soaring 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 0.105 per share on 04^th April 2022, up by ~16.666%.

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 – AVL

Source: REFINITIV

Lithium Power International Limited (ASX: LPI)

Lithium Power International Limited is a lithium company, based in Australia. The company focuses on the development and exploration of lithium and its regions include South America’s lithium brine region and Western Australia’s spodumene hard rock.

Technical Analysis: On the daily chart, LPI stock prices are hovering below the rising trend line resistance level and facing the resistance of the same. Moreover, the momentum oscillator RSI (14-period) is trading an overbought zone ~77.99 level and formed a positive divergence, indicating the possibility of rebound in the price. However, the prices are trading above the trend-following indicator 21-period SMA, which may act as a support zone. An important support level for the stock, is placed at AUD 0.840 while the key resistance level is placed at AUD 1.100.

The company’s stock is currently trading at higher levels, investing at such high RSI 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 0.960 per share on 04^th April 2022, up by ~5.494%.

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 – LPI

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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