Company Overview: Premier Investments Limited (ASX: PMV) operates various specialty retail fashion chains in Australia, New Zealand, Asia, and Europe, offering casual wear, women’s wear, and non-apparel products. It has a portfolio of retail brands consisting of Just Jeans, Jay Jays, Jacqui E, Portmans, Dotti, Peter Alexander, and Smiggle. Emerald Resources NL (ASX: EMR) focuses on the development and commissioning of gold projects in Cambodia, which holds a range of projects making up of a combination of granted mining licenses and interests joint venture agreements. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.
Recent Updates:
On 26 March 2024, the company reported its half-yearly results for the period ended 27 January 2024. In 1HFY24, PMV recorded sales of AUD 879.5mn, down 2.8% YoY. EBIT for the period stood at AUD 209.8mn, a decline of 4.8% from the prior corresponding period. However, Group’s global sales for the first 8 weeks of 2HFY24 witnessed an upward momentum from 1HFY24.
The company declared an interim fully franked ordinary dividend of 63 cps, depicting a rise of 16.7% YoY. In 1HFY24, the company inked a deal with a key wholesale partner to launch freestanding Smiggle stores in Indonesia. Closing cash on hand stood at AUD 478.1mn as at 27 January 2024.
The company remains on track to deliver value for customers in its products and shopping experience and focus on inventory productivity along with operational efficiencies. Premier Retail business is well placed to maximise EBIT growth surveying future offshore market prospects including the opening of Peter Alexander UK before Christmas 2024.
PMV’s Technical Analysis:
On the daily chart, PMV's stock price is undergoing a correction during an uptrend, which might lead the stock to enter a trading range. Additionally, the RSI (14-period) is trading near the midpoint, providing further support for the mentioned recommendation. Prices are trading below both the 21-period and 50-day SMAs, which may potentially function as dynamic resistance levels for the stock; in contrast, the stock’s most recent low might act as a support level. Critical support for the stock is positioned at AUD 26.29, while key resistance is placed at AUD 30.58.
Daily Technical Chart – PMV
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 forming a trading range, and momentum oscillator analysis, a “Watch” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 28.89 per share as on 13 May 2024, down by 0.34%. Premier Investments Limited (ASX: PMV) was last covered in a report dated ’22 August 2023’.
EMR’s Technical Analysis:
On the daily chart, EMR's stock price has established an uptrend characterized by higher highs and higher lows, indicating a positive trend. Additionally, the stock most recently breaks above its previous peak and the RSI (14-period) is heading north from the midpoint, providing further support for the previous analysis. Prices are trading above both the 21-period and 50-day SMAs, which may potentially function as dynamic support levels for the stock; in contrast, the stock’s most recent high might act as a resistance level. Important support for the stock is located at AUD 3.26, while significant resistance is situated at AUD 3.82.
Daily Technical Chart – EMR
Considering the stock’s current price levels forming higher peaks and higher troughs, and momentum oscillator analysis, a “Speculative Buy” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 3.60 per share as on 13 May 2024, up by 2.86%. Emerald Resources NL (ASX: EMR) was last covered in a report dated ‘13 January 2023’.
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 May 13, 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.