Galan Lithium Limited

Galan Lithium Limited (ASX: GLN) is a mining development firm that focuses on lithium brine assets in Argentina's Hombre Muerto Basin. It possesses two lithium brine projects totalling over 25,000 hectares in the vicinity.

Technical Analysis:

On the daily chart, the GLN's prices are trading around the crucial support level of AUD 0.935, built since July 2022, indicating the possibility of an upside reversal. In addition, while trading below the midpoint with a reading of 34.99, the RSI (14-period) is much higher than its lowest point, which might signal a positive divergence. In contrast, prices are trading below the 21-period SMA, which may serve as a resistance level for the stock. Important support for the stock is around 0.935 AUD, while critical resistance is at 1.110 AUD.

Daily Technical Chart – GLN

Considering the company’s current prices trading around crucial support level and momentum oscillator analysis, it is prudent to invest in this stock at closing price levels; hence a ‘Speculative Buy’ stance is suggested. The stock was analysed as per the closing price of AUD 0.995 per share on 22nd March 2023, down by 0.50%.

Core Lithium Limited

Core Lithium Limited (ASX: CXO) is involved in the exploration of copper, gold, iron, silver, uranium, lead, and zinc resources, as well as the development of lithium and different metal deposits in the Northern Territory and South Australia.

Technical Analysis:

On the daily chart, CXO’s prices are facing resistance from a falling trendline on the upside, indicating the possibility of further downward move hereon. In contrast, although trading below the midpoint with a value of 31.12, the RSI (14-period) is forming a positive divergence with the price action. Besides, prices are trading below the 21-period SMA, which may operate as a resistance for the stock. An important support level for the stock is AUD 0.720, while the key resistance level is AUD 0.915.

Daily Technical Chart – CXO

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 facing trendline resistance and momentum oscillator analysis, a ‘Watch’ recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.790 per share as on 22 Mar 2023, down by 3.66%.

GCX Metals Limited

GCX Metals Limited (ASX: GCX) is a gold exploration company whose primary emphasis is the exploration and development of the Onslow Gold Property. The project is situated in the northwest extension of the Capricorn Orogen and is regarded as gold and copper promising.

Technical Analysis:

On the daily chart, after breakaway gap appeared at the end of 2022, GCX's price has entered a trading range that is likely to remain in the near future. Moreover, RSI (14-period) is trading in the oversold zone with a reading of 21.98. The prices are trading below the trend-following indicators 21-period and 50-period SMAs, which may act as the resistance levels for the stock. An important support level for the stock is placed at AUD 0.028, while the key resistance level is placed at AUD 0.034.

Daily Technical Chart – GCX

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 facing trendline resistance and momentum oscillator analysis, a ‘Watch’ recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.031 per share as on 22 Mar 2023, down by 3.13%.

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.

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/ 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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