EMU NL (ASX: EMU)

EMU NL is an Australia-based resource exploration company. The Company’s projects include Gnows Nest, Viper, Sunfire and 8 Mile Dam.

Technical Analysis: On the weekly chart, EMU price witnessed a breakout of a falling trendline at AUD 0.021 level (on April 05, 2022). Since the breakout, prices are sustaining above the trendline, which indicates bulls are in action. 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 ~52.17 level, indicating positive momentum. An important support level for the stock is placed at AUD 0.020 while the key resistance level is placed at AUD 0.027.

As per the above-mentioned price action and technical indicators analysis, we can conclude that EMU NL is looking technically well-placed on the chart, and we have a ‘Speculative Buy’ rating on the stock at the close price of AUD 0.023 as of 08^th April 2022, up by ~4.545%. 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 – EMU

Source: REFINITIV

88 Energy Limited (ASX: 88E)

88 Energy Limited is an Australia-based exploration company. The Company is engaged in oil and gas exploration.

Technical Analysis: On the weekly chart, 88E prices are trading below the rising trend line breakout level and facing the resistance of the same. The momentum oscillator RSI (14-period) is trading at ~36.38 level, indicating lack of strength in the price. Moreover, the prices are trading below the trend-following indicator 21-period and 50-period SMA, which may act as a resistance level. An important support level for the stock, is placed at AUD 0.014 while the key resistance level is placed at AUD 0.020.

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 0.016 per share on 08^th April 2022, up by ~14.285%.

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.

Weekly Technical Chart – 88E

Source: REFINITIV

NOTE: 88 Energy Limited (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. 

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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