Company Overview: VRX Silica Limited (ASX: VRX) is engaged in the exploration and development of mineral properties. It is involved in the exploration of gold in West Africa with one additional project for gold in Australia. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Target Prices, and Recommendation on this one stock.

VRX’s Technical Analysis:

On the daily chart, VRX’s prices are sustaining above a falling trendline support zone and forming a positive divergence compared to RSI (14-period), indicating the possibility of a northward movement hereon. However, the prices are trading below the trend-following indicator 50-period SMAs which may act as a resistance level for the stock.

Daily Technical Chart – VRX

Considering the company's current price levels trading above the trendline and technical indicators analysis, a 'Speculative Buy' rating has been given on this stock. The stock was analysed at the closing price of AUD 0.100 per share on 14 April 2023. VRX Silica Limited (ASX: VRX) was last covered in a report dated '24 March 2023'. 

Disclosure: VRX Silica 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 related insights 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.

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.

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.

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 Red 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 Black 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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