2 ASX-Listed Stocks for Technical Analysis – NVA, CVN
Nova Minerals Limited (ASX: NVA)
Nova Minerals Limited is an exploration company focused on Alaska’s Tintina Gold Belt, Victoria Gold’s Eagle Mine, and Kinross Gold Corporation’s Fort Knox Gold Mine.
Technical Analysis: On the monthly chart, NVA prices came down drastically in the past five months. However, prices are now taking support of the downward sloping trend line and have started moving up from the lower levels. Prices has also completed its ABCD harmonic pattern (correction pattern) on a monthly chart that also indicates that the stock might move up in the coming period. The momentum oscillator RSI (14-period) is trading at ~43.25 level. However, the prices are trading below the trend-following indicator 21-period SMA, which may act as a resistance level. An important support level for the stock, is placed at AUD 0.631 and AUD 0.580 while the key resistance level is placed at AUD 0.84 and AUD 1.039.
Considering the company’s current price levels reversing from good support levels, completion of Harmonic pattern, it is prudent to invest in this stock at current levels. Hence, ‘Speculative Buy’ rating is suggested. The stock was analysed as per the closing price of AUD 0.71 per share, down ~4.69% on 25th March 2022. However, the risk levels are high considering the project delays, funding risks, etc. Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Monthly Technical Chart – NVA
Source: REFINITIV
Note: Nova Minerals 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.
Carnarvon Energy Limited (ASX: CVN)
Carnarvon Energy Limited is an Australia-based oil and gas exploration company. The Company projects include Phoenix, Buffalo, Eagle, Condor, Labyrinth, Maracas, Outtrim, and Santa Cruz.
Technical Analysis: On the weekly chart, CVN 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 level, showing negative sign. However, the prices are trading above the trend-following indicator 21-period SMA, which may act as a support level. An important support level for the stock, is placed at AUD 0.27 while the key resistance level is placed at AUD 0.38.
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.
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 0.33 per share, down ~4.35% on 25th March 2022.
Weekly Technical Chart – CVN
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.
Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.
Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.
There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.
You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.
The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.
Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.
Please also read our Terms & Conditions and Financial Services Guide for further information.
On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.
Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.