Piedmont Lithium Inc. (ASX: PLL)

Piedmont Lithium Inc. (ASX: PLL) is an exploration company focused on lithium projects in North Carolina, USA. It develops battery-grade lithium hydroxide and other chemical essentials to the electric vehicle and battery storage markets in the United States. As of September 27, 2022, PLL's market capitalization stood at AUD 1.26bn.

Technical Analysis: On the weekly chart, PLL prices are taking support at the rising trendline, indicating the possibility of an upside move hereon. Moreover, the momentum oscillator RSI (14-period) is in positive territory and showing a reading of ~53.408 level, which might indicate the possibility of an upside in the stock. Further, the prices are trading above the trend-following indicator 21-period and SMA 50-period SMA, which may act as a support level. An important support level for the stock is placed at AUD 0.770 while the key resistance level is placed at AUD 0.940.

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.

Considering the company's current price levels moving in an uptrend, and momentum indicator analysis, a 'Speculative Buy' recommendation has been given on the stock. The stock was analysed as per the closing price of AUD 0.845 per share, as on 27^th September 2022, up by ~6.289%. 

Weekly Technical Chart – PLL

Pact Group Holdings Ltd. (ASX: PGH)

Pact Group Holdings Ltd (ASX: PGH) manufactures, packaging and other products. The company’s principal activities are the conversion of plastic resin and steel into rigid packaging and other products that service customers in various sectors, including food and beverages, personal care, household consumer, industrial and chemical, material handling and infrastructure. As of September 27, 2022, PGH’s market capitalization stood at AUD 483.72mn.

Technical Analysis: On a daily chart, PGH prices witnessed steep decline in prices in the past several weeks. However, prices are now taking support of a downward sloping trend line that indicates prices might rebound from the immediate support levels in the coming sessions. Also, there is a positive RSI divergence with prices clearly visible on a daily chart that further support our bullish recommendation. Moreover, the momentum oscillator RSI (14-period) is hovering at oversold region at ~26.449, indicating profit booking might occur in the stock in the coming sessions. An important support level for the stock, is placed at AUD 1.160 while the key resistance level is placed at AUD 1.520.

Considering the company’s current price levels taking support of a downward sloping trend line, Positive RSI divergence with prices and momentum oscillator analysis, it is prudent to recommend a ‘Speculative Buy’ rating on this stock. The stock was analysed as per the closing price of AUD 1.335 per share on 27^th September 2022, down by ~4.98% from the prior closing.

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 – PGH

Hawsons Iron Ltd (ASX: HIO)

Hawsons Iron Ltd. (ASX: HIO) is a mineral exploration company. The company is currently focuses on developing its flagship Hawsons Iron Project near Broken Hill, NSW into a premium producer of high-quality iron ore products for the global steel industry. As of September 27, 2022, HIO's market capitalization stood at AUD 289.01mn.

Technical Analysis: On the weekly chart, HIO stock price has broken the rising trendline since then prices are sustaining above the same trendline, indicating the possibility of further upside move hereon. Moreover, the momentum oscillator RSI (14-period) is in positive territory and showing a reading of ~51.685 level which might indicate the possibility of an upside in the stock. Further, the prices are trading above the trend-following indicator SMA 50-period SMA, which may act as a support level. An important support level for the stock is placed at AUD 0.377 while the key resistance level is placed at AUD 0.460.

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.

Considering the company’s current price levels broke a rising trend line by downside, momentum oscillator analysis, therefore a 'Speculative Buy' recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.415 per share, as on 27^th August 2022, up by ~6.41%.

Weekly Technical Chart – HIO

Note 1: Past performance is not a reliable indicator 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 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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