2 ASX Stocks for Technical Analysis- EVR, MRQ

EV Resources Ltd. (ASX: EVR)

EVR operates as an exploration company with projects in electric vehicles and lithium within Europe. In addition, the company holds interests in precious metals in Latin America.

Technical Analysis: On a weekly chart, EVR prices broke the downward sloping trend line by upside and the prices are trading above its breakout point since past one week that is positive for the price action. Moreover, the momentum oscillator RSI (14-period) is trading at ~56.26, indicating bullish price momentum for the stock. An important support level for the stock, is placed at AUD 0.050 while the key resistance level is placed at AUD 0.068.

Considering the company’s current price levels with upside breakout, trend indicator analysis, momentum indicator analysis, it is prudent to invest in this stock at closing price levels; hence a ‘Speculative Buy’ stance is suggested. The stock was analysed as per the closing price of AUD 0.059 per share, up ~13.5% on 01st April 2022. Investors with high-risk appetite can consider entering the stock. 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.

Weekly Technical Chart – EVR

Source: REFINITIV

MRG Metals Limited (ASX: MRQ)

MRQ is an exploration company involved in the development of heavy mineral sands within Mozambique. Its projects include the Corridor Projects, Linhuane Exploration Project, Marao and Marruca Exploration Projects.

Technical Analysis: On the daily chart, MRQ prices are trading in a long consolidation phase from past several months in a broad trading range between AUD 0.009 and AUD 0.013 with no clear price direction. However, the momentum oscillator, RSI (14-period) trading at ~60.39, further indicates that the stock is trading in a moderate zone. An important support level for the stock, is placed at AUD 0.010 while the key resistance level is placed at AUD 0.012.

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 trading in a primary downward trend, and long consolidation range, it is prudent for the investors to ‘Watch’ this stock. The stock was analysed as per the closing price of AUD 0.011 per share, up ~22.2% on 01^st April 2022.

Daily Technical Chart – MRQ

Source: REFINITIV

Note: MRG Metals 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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