Company Overview: Black Canyon Limited (ASX: BCA) focuses on mineral exploration activities in Australia, exploring for manganese, copper, and cobalt targets; its flagship project includes Flanagan Bore Project located in the Pilbara region of Western Australia. Metro Performance Glass Limited (ASX: MPP) supplies processed flat glass and related products for the residential and commercial building sectors in New Zealand and Australia, offering glass splashbacks, mirror glass, internal glass partitions, and glass canopies and facades, as well as floors and stairs and commercial glass. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.

Recent Updates:

On 27 September 2024, BCA reported successful outcomes from its drilling program at the W2 prospect in Wandanya, situated 80 km south of the Woodie Woodie Mine.

The drilling has revealed high-grade manganese, with portable XRF (pXRF) analysis indicating grades ranging from 15% to 55% Mn. This mineralization is interpreted as hydrothermal and stratabound, presenting exciting new exploration opportunities along a 1.75 km stretch of mapped high-grade outcropping manganese.

The company anticipates expedited laboratory assay results soon to validate the pXRF readings. The drill program included 35 holes over a total of 642 meters, with initial results suggesting consistent mineralization across a significant strike length.

Black Canyon’s Managing Director highlighted the promising geological features and the exploration potential stemming from this new mineralization model.

This discovery is poised to enhance Black Canyon's prospects by potentially increasing its resource base, improving its competitive edge in the manganese market, and attracting further investment. The anticipated high-grade manganese production could lead to improved cash flows, bolstering the company's financial stability and growth trajectory in the emerging energy transition metals sector.

Key Risks:

Investing in Black Canyon Limited (ASX: BCA) carries several risks that potential investors should consider. Firstly, the company is in the exploration phase, which inherently involves uncertainty regarding the viability of its manganese projects. The success of drilling programs and the accuracy of initial assessments can fluctuate, and further laboratory results may not confirm preliminary findings. Additionally, the market for manganese can be volatile, influenced by global supply-demand dynamics and price fluctuations, potentially impacting revenue projections.

BCA’s Technical Analysis:

On the daily chart, BCA’s stock price is rebounding from the lower boundary of a descending wedge pattern, anticipating for a minor rally. Additionally, after forming a bottom divergence near its oversold region in relation to prices, the RSI (14-period) is heading north from the midpoint, providing further support to the mentioned recommendation. Prices are trading between its previous peak and trough, which may potentially function as resistance and support levels for the stock, respectively. Critical support for the stock is positioned at AUD 0.060, while key resistance is placed at AUD 0.075.

Daily Technical Chart – BCA

Considering the stock’s current price levels rebounding from the lower boundary of a descending wedge pattern, and momentum oscillator analysis, a “Speculative Buy” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.068 per share as on 27 September 2024, up by 17.24%.             

MPP’s Technical Analysis:

On the daily chart, MPP's stock price penetrated its previous trough with a breakaway gap, indicating a negative bias. In contrast, the trading volume also spiked on the last trading session, anticipating for a minor rally. Additionally, the RSI (14-period) is trading in its oversold region, adding more evidence to the previous observation. Prices are trading below its previous trough, which may potentially function as a resistance level for the stock; in contrast, the stock’s nearest round level might act as a support level. Significant support for the stock is located at AUD 0.030, while key resistance is situated at AUD 0.050.

Daily Technical Chart – MPP

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 stock’s current price levels penetrating its previous trough with spike trading volume, and momentum oscillator analysis, a “Watch” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.040 per share as on 27 September 2024, down by 52.94%.

Disclaimer: Black Canyon 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.

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.

The reference date for all price data, currency, technical indicators, support, and resistance levels is September 27, 2024. The reference data in this report has been partly sourced from REFINITIV.

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.