Galileo Mining Limited (ASX: GAL)

Galileo Mining Limited is a mineral exploration company in Western Australia. The company is engaged in exploring copper, nickel and cobalt as well as manganese oxide deposits.

Technical Analysis: On the daily chart, GAL prices moved up significantly in the recent trading sessions. However, prices are now getting resistance of the upward sloping trend line that indicates stock might took correction from key resistance levels. There is a negative RSI divergence with prices that further support our bearish stance. Moreover, the momentum oscillator RSI (14-period) trading at overbought region at ~74.98, further indicates that profit booking might occur in the stock in the coming trading sessions. An important support level for the stock, is placed at AUD 0.700 while the key resistance level is placed at AUD 0.875.

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 below an upward sloping trend line, and momentum indicator analysis, it is prudent to suggest a ‘Watch’ stance on this this stock. The stock was analysed as per the closing price of AUD 0.790 per share on 17^th May 2022, down ~7.60%.

Daily Technical Chart – GAL

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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