Australian Mines Limited (ASX: AUZ)

AUZ is an Australian company involved in catering Electric Vehicle (EV) and energy storage industries by producing and supplying technology metal materials. It is also engaged in the development of Cobalt-Nickel-Scandium Projects in Australia.

Technical Analysis: On a weekly chart, AUZ prices broke a downward sloping trend line by an upside and the prices are sustaining above the breakout level from past one week. However, prices are trading below its 21-period SMA that is acting as a resistance. Moreover, the momentum oscillator RSI (14-period) is trying to reverse from oversold region and currently hovering at ~38.83, indicating positive for stock price. An important support level for the stock, is placed at AUD 0.077 while the key resistance level is placed at AUD 0.103.

Considering the company’s current price levels broke a downward sloping trend line, and momentum oscillator analysis, it is prudent to recommend a ‘Speculative Buy’ stance on this stock. The stock was analysed as per the closing price of AUD 0.085 per share on 9^th September 2022, up ~4.94%.

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 – AUZ

FBR Ltd. (ASX: FBR)

FBR is an Australian robotics company, engaged in developing and commercializing digital construction solutions.

Technical Analysis: On a monthly chart, FBR prices broke a downward sloping trend line by an upside and the prices are sustaining above the same from past one month that further indicates the prices might move up further. Also, the prices are sustaining above its 21-period SMA that further support the bullish recommendation. Moreover, the momentum oscillator RSI (14-period) is trading at ~55.025, indicating strong momentum for the stock. An important support level for the stock, is placed at AUD 0.047 while the key resistance level is placed at AUD 0.065.

Considering the company’s current price levels broke a downward sloping trend line, momentum oscillator analysis, it is prudent to recommend a ‘Speculative Buy’ stance on this stock. The stock was analysed as per the closing price of AUD 0.054 per share on 9^th September 2022, up ~10.20%.

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.

Monthly Technical Chart – FBR

Far East Gold Ltd (ASX: FEG)

Far East Gold Ltd is an Australia-based company. The company is engaged in the exploration of gold and copper.

Technical Analysis: On the Daily chart, FEG prices are trading below the rising trendline resistance zone and prices are facing the resistance of the same. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~70.94 level, which might indicate the possibility of correction in the stock. However, the prices are trading above the trend-following indicator 21-period SMA, which may act as a support level. An important support level for the stock is placed at AUD 0.450 while the key resistance level is placed at AUD 0.650.

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.

Considering the company’s current price levels moving in an uptrend, and momentum indicator analysis, a 'Watch' recommendation has been given on the stock. The stock was analysed as per the closing price of AUD 0.540 per share, as on 09^th September 2022, up ~12.50%. 

Daily Technical Chart – FEG

Pure Hydrogen Corporation Limited (ASX: PH2)

Pure Hydrogen Corporation Limited is an Australia-based company. The company is engaged in the development of hydrogen and fuel cell technology.

Technical Analysis: On the daily chart, PH2 price witnessed a breakout of the rising trendline support and prices are trading below the trendline support level. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~47.11 level, indicating negative momentum. Further, the prices are trading below the trend-following indicators 21- period SMA, which may act as resistance zone. An important support level for the stock is placed at AUD 0.250 while the key resistance level is placed at AUD 0.360.

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.

Considering the company’s current price levels moving in a downtrend, and momentum indicator analysis, a 'Watch' recommendation has been given on the stock. The stock was analysed as per the closing price of AUD 0.300 per share, as on 09^th September 2022.

Daily Technical Chart – PH2

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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