Company Overview: Althea Group Holdings Limited (ASX: AGH) manufactures, sells, and distributes cannabis-based medicines and recreational cannabis products. Australian Mines Limited (ASX: AUZ) is an Australian company involved in catering to Electric Vehicle (EV) and energy storage industries by producing and supplying technology metal materials. It is also engaged in the development of Cobalt-Nickel-Scandium Projects in Australia. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.

AGH’s Technical Analysis:

AGH’s price is trading in the lower lows and lower highs formation and sustaining below an upward sloping trend line breakout level, indicating the possibility of a sideways to negative movement in the stock prices. Furthermore, the RSI (14-period) is below the midpoint with a reading of 40.38, and the current market price is below the 21-period and 50-period SMAs, supporting a sideways to negative movement. An important support level for the stock is at AUD 0.040, while a key resistance level is at AUD 0.052.

Daily Technical Chart – AGH

Considering the stock's current prices trading below an upward sloping trend line breakout and technical indicators analysis, a 'Watch' recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.045 per share as on 09 June 2023. Althea Group Holdings Limited (ASX: AGH) was last covered in a report dated '06 April 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.

AUZ’s Technical Analysis:

AUZ’s price is trading in the lower lows and lower highs formation and sustaining below a downward sloping trend line, indicating the possibility of a sideways to negative movement in the stock prices. Furthermore, the RSI (14-period) is below the midpoint with a reading of 31.08, and the current market price is below the 21-period and 50-period SMAs, supporting a sideways to negative movement. An important support level for the stock is at AUD 0.015, while a key resistance level is at AUD 0.019.

Daily Technical Chart – AUZ

Considering the company's current price trading below a downward sloping trend and technical indicators analysis, a 'Watch' recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.017 per share as on 09 June 2023. Australian Mines Limited (ASX: AUZ) was last covered in a report dated '12 September 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 June 09, 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 Red 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 Black 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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