BHP Group Ltd. (ASX: BHP)
BHP is involved in the production of multiple commodities such as copper and uranium, copper smelter, copper refinery, and precious metals. It operates key segments of copper, petroleum, coal, and iron ore.
Technical Analysis: On a daily chart, BHP prices broke an ascending channel pattern by an upside and the prices are sustaining above the breakout level from past several days. Prices are also trading above its 21-period SMA that further supporting our buy recommendation. Moreover, the momentum oscillator RSI (14-period) is currently hovering at ~65.795, indicating bullish momentum for the stock price. An important support level for the stock, is placed at AUD 40.840 while the key resistance level is placed at AUD 49.750.
Considering the company’s current price levels showing breakout of an ascending channel pattern, and momentum oscillator analysis, it is prudent to recommend a ‘Speculative Buy’ rating. The stock was analysed as per the closing price of AUD 43.940 per share on 18th November 2022, up ~0.32%.
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.
Daily Technical Chart – BHP
Copper Mountain Mining Corporation (ASX: C6C)
C6C is mainly involved in the exploration and production of copper from the world class mining jurisdictions.
Technical Analysis: On a weekly chart, C6C prices broke a downward sloping trend line by an upside and the prices are sustaining above the breakout level from past several weeks. Also, prices have recently took support of the same downward sloping trend line support and are also trading above its 21-period SMA that further supporting our buy recommendation. Moreover, the momentum oscillator RSI (14-period) stood up from oversold region and currently hovering at ~42.352, indicating stock is gaining upside momentum. An important support level for the stock, is placed at AUD 1.590 while the key resistance level is placed at AUD 2.350.
Considering the company’s current price levels showing breakout of a downward sloping trend line by an upside, and momentum oscillator analysis, it is prudent to recommend a ‘Speculative Buy’ rating. The stock was analysed as per the closing price of AUD 1.880 per share on 18th November 2022, up ~2.73%.
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 – C6C
Qantas Airways Limited (ASX: QAN)
Qantas Airways Limited (ASX: QAN) is one of the oldest Australian airline company. The company provides passenger and freight transportation services in Australia as well as internationally.
Technical Analysis: On the weekly chart, QAN prices are trading below the rising trendline and facing the resistance from the same. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~64.53 level. However, the prices are trading above the trend-following indicators 50- period SMA, which may act as support zone. An important support level for the stock is placed at AUD 4.900 while the key resistance level is placed at AUD 6.800.
Considering the company’s current price levels are sustaining below the upward sloping trend, momentum oscillator analysis, it is prudent to recommend a ‘Watch’ stance on this stock. The stock was analysed as per the closing price of AUD 5.880 per share on 18th November 2022, down ~0.338%.
Individuals 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 – QAN
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report.
Note 3: 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.
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.
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 Orange/ 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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