Company Overview: Coronado Global Resources Inc. (ASX: CRN) produces, markets, and exports metallurgical coal, which owns a portfolio of operating mines and development projects in Queensland, Australia; and Virginia, West Virginia, and Pennsylvania in the United States. Vmoto Limited (ASX: VMT) is an electric two-wheel vehicle manufacturing and distribution company, which operates in four geographical segments: Australia, China, Europe and Singapore. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.
Recent Updates:
Global metallurgical coal producer Coronado Global Resources Inc. (ASX: CRN) registered USD 2.2bn in group revenues for the year-to-date period, as of 30 September 2023. The company reported a 3.7% YoY jump in ROM coal production and a 2.2% YoY increase in saleable production in the period. At the end of the September quarter, the company held net cash of USD 95mn. In FY23, CRN expects to register saleable production of 16.2-16.4Mt. Average mining costs per tonne sold are expected at USD 97.0-102.0 for FY23.
CRN’s Technical Analysis:
On the daily chart, CRN's stock price is fluctuating between a symmetrical triangle pattern characterized by lower highs and higher lows, indicating that the sideways period might remain intact. Additionally, the RSI (14-period) is fluctuating around the midpoint, providing further support for the mentioned recommendation. Prices are fluctuating between its previous peak and trough, which may potentially function as resistance and support levels for the stock, respectively. Important support for the stock is positioned at AUD 1.423, while key resistance is placed at AUD 1.770.
Daily Technical Chart – CRN
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.
Coronado Global Resources Inc. (ASX: CRN) was last covered in a report dated ’16 October 2023’.
Recent Updates:
Under the prospectus dated 13th October 2023, VMT announced a non-renounceable entitlement issue to eligible shareholders of up to 75 million new shares at a price of $0.15 new share based on 1) one new share for every four share and b) shares held as per the record date. The purpose is to raise upto $10.8million (before expenses).
VMT’s Technical Analysis:
While experiencing a downtrend, VMT's stock price is forming a bottom divergence in relation to the relative strength indicator on the daily chart, signalling a positive bias. Additionally, the stock recently broke above the trend-following indicator 21-period SMA, adding further evidence to the mentioned observation. Prices are trading between its previous peak and trough, which may potentially function as resistance and support levels for the stock. Significant support for the stock is positioned at AUD 0.160, while critical resistance is placed at AUD 0.200.
Daily Technical Chart – VMT
Considering the stock’s current price levels forming a bottom divergence, and momentum oscillator analysis, a “Speculative Buy” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.185 per share as on 10 November 2023, up by 19.35%. Vmoto Limited (ASX: VMT) was last covered in a report dated ’13 May 2022’.
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.
The reference date for all price data, currency, technical indicators, support, and resistance levels is November 10, 2023. 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.