Mid-Cap

Technical Analysis on Two ASX-Listed Stocks – CSR, KAI

August 03, 2023 | Team Kalkine
Technical Analysis on Two ASX-Listed Stocks – CSR, KAI

Company Overview: CSR Limited (ASX: CSR) is one of the world's largest building and construction materials companies, whose principal activities include the manufacture and supply of building products in Australia, New Zealand, Asia, and the United States. Kairos Minerals Limited (ASX: KAI) is an exploration company targeting lithium and gold discoveries in Western Australia's premier mining districts, with a core focus on its 100%-owned Pilbara Gold Projects. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.

CSR Limited (ASX: CSR)

Technical Analysis:

Despite being in a short-term uptrend characterized by higher highs and higher lows, CSR's price has recently shown two consecutive top divergences compared to the RSI (14-period), indicating a negative bias, which suggests that the stock may soon enter a trading range. Moreover, the RSI (14-period) is moving south from the overbought region, providing further support to a sideways to negative bias. Currently, the prices are above both the 21-period and 50-day SMAs, which might serve as dynamic supports for the stock. Important support for the stock is positioned at AUD 5.39, while key resistance is placed at AUD 6.15.

Daily Technical Chart – CSR

Considering the stock’s current price levels forming two consecutive top divergences, and momentum oscillator analysis, a 'Watch' recommendation is given on the stock. The stock was analysed as per the closing price of AUD 5.72 per share as on 02 Aug 2023, down by 1.04%. CSR Limited (ASX: CSR) was last covered in a report dated ‘13 July 2023'.

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.

Kairos Minerals Limited (ASX: KAI)

Technical Analysis:

KAI's price is forming a descending triangle pattern identified by lower highs and identical lows, indicating that the stock's trading range might remain intact. Additionally, the RSI (14-period) is fluctuating near the midpoint, providing further support for a negative bias. Prices are trading above the 50-period SMA but below the 21-day SMA, which may potentially function as a dynamic support level and resistance level for the stock. Significant support for the stock is situated at AUD 0.022, while critical resistance is located at AUD 0.027.

Daily Technical Chart – KAI

Considering the stock's current price levels forming a Descending triangle pattern and technical indicators analysis, a 'Watch' recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.025 per share as on 02 Aug 2023. Kairos Minerals Limited (ASX: KAI) was last covered in a report dated '12 November 2021'.

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. 

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 August 02, 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.


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