Harvey Norman Holdings Limited (ASX: HVN)
Harvey Norman Holdings Limited operates as a retailer offering computer and electrical products, furniture, computerized communications, and several others. Some of its brands include Harvey Norman, Domayne, and Joyce Mayne.
Technical Analysis: On the daily chart, HVN price witnessed a breakout of the falling trendline at AUD 4.16 level on August 02, 2022. Since then, prices are sustaining above the upper band of the wedge pattern. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~62.50 level, indicating positive momentum. Further, the prices are trading above the trend-following indicator 21-period & 50-period SMA, which may act as crucial support level. An important support level for the stock, is placed at AUD 3.60 while the key resistance level is placed at AUD 5.10.
Considering the company’s current price levels broke a downward sloping trend line by upside, momentum oscillator analysis, it is prudent to recommend a ‘Hold’ rating on this stock. The stock was analysed as per the closing price of AUD 4.30 per share, as on 08th August 2022, down by ~1.376%.
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.
Daily Technical Chart – HVN
Sayona Mining Ltd. (ASX: SYA)
SYA is a lithium focused mineral exploration company. The company flagship project includes Authier Lithium project in Quebec, Canada, and Tansim Lithium Project in Canada.
Technical Analysis: On the daily chart, SYA prices are facing the resistance of the rising trendline, and prices are sustaining below the trendline resistance zone. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~70.46 level, which might indicate the possibility of correction in the stock. However, the prices are trading above the trend-following indicator 50-period SMA, which may act as support level. An important support level for the stock, is placed at AUD 0.20 while the key resistance level is placed at AUD 0.30.
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 0.245 per share, as on 08th August 2022, up by 16.666%.
Daily Technical Chart – SYA
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. 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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