Highfield Resources Limited (ASX: HFR)

HFR is an Australian company engaged in mineral exploration which was listed on ASX in 2012, mainly Potash. Its four major projects are: Muga, Vipasca, Izaga, Pintanos and Sierra del Perdon, that are located in Northern Spain. Its market capitalization stood at $318.87 million as of 18^th March 2022.

Technical Analysis: HFR price is trading in a medium-term bullish trend. Prices recently broke its symmetrical triangle pattern by upside and the prices are now taking support of the same that is further supportive for the price action. Prices are also breaking the downward sloping trend line by upside on a long-term chart that is further supporting our bullish stance. RSI (14-period) is hovering at ~53.74 on a daily chart that indicates bullish price momentum for the stock. Immediate support levels are AUD 0.775 and AUD 0.700 while immediate resistance levels are AUD 0.965 and AUD 1.070.

Considering the current technical levels, investors with a high-risk appetite might consider a ‘Speculative Buy’ position. The stock was analysed as per the closing price of AUD 0.855 per share on 18^th March 2022, down ~2.286%. However, the risk levels are high depending on the lockdown fears impacting future material findings and its saleability. 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. 

Daily Technical Chart – HFR

Source: REFINITIV

Core Lithium Ltd (ASX: CXO)

Listed in 2011 on ASX, CXO operates into mineral exploration including zinc, silver, gold, uranium, copper and lead projects. Its projects are Finniss Lithium Project and others in the Northern Territory and South Australia. Its market capitalization stood at AUD 1.79 billion as of 18^th March 2022.

Technical Analysis: CXO prices are trading in a primary bullish trend. Prices moved up significantly from past one year. However, prices are now taking resistance of the upward sloping trend line that indicates profit booking might occur from the key resistance levels. There is a negative RSI divergence with price clearly visible on charts that further support our bearish stance on the stock. RSI (14-period) is hovering at extreme overbought region at ~66 on a monthly chart that further indicates profit booking might occur from the higher levels. Immediate support levels are AUD 0.965 and AUD 0.885 while immediate resistance levels are AUD 1.250 and AUD 1.395.

Considering the company’s current price levels with higher RSI on monthly chart, 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 1.125 per share on 18^th March 2022, up ~6.63%.

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 

Daily Technical Chart – CXO

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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