Geopacific Resources Ltd.

Geopacific Resources Limited (ASX: GPR) is a mineral exploration company focused on gold and copper deposits in Cambodia and Fiji. The Company's projects include the Fiji Project, and the Kou Sa project.         
As per our previous recommendation on GPR as on April 13, 2021, we recommended a ‘Speculative Buy’ rating on the stock at AUD 0.346 from the technical analysis standpoint. The stock made a high of AUD 0.380 as on April 28, 2021 and witnessed an upside movement of ~9.83 percent from the recommended entry price. However, prices started consolidating since then within the range of AUD 0.325- AUD 0.370. Considering the recent price action and technical indicators analysis, we are of the view that the stock is trading near  the breakout level on weekly chart which indicates that stock still have the potential to move upside and hence we recommend a ‘Hold’ rating on the stock. The summary of our previous ‘Speculative Buy’ rating, revised price targets, revised stop loss and price movement since our previous recommendation for GPR is provided as below:

Price Action Analysis (on the Weekly Chart)

GPR’s prices recently broke the symmetrical triangle pattern resistance level of AUD 0.345 and are trading above the mentioned level from past one week which is supportive for an upward movement. The next important resistance level appears at AUD 0.40 and prices may test that level in the coming sessions.

On the weekly chart, RSI (14) is hovering at ~41 level which is still supportive for the upside movement.  Volumes are showing an increasing trend that indicates active participation in the stock.

Conclusion:

Based on the above-mentioned price action and technical indicators analysis, we can conclude that GPR is still looking technically well-placed on the chart and we are recommending ‘Hold’ rating on the stock from the current price level of AUD 0.350.

Investment Related Risks: Based on the technical analysis, the risks are defined as per risk-reward ratio (~0.60:1.00), however, returns are generated within 2-4 weeks’ time frame. This may be looked at by Investors with sufficient risk appetite looking for returns within short investment duration. Investment recommendations provided in this report are solely based on technical parameters, and 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, and social and political instability risks etc.

Note: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

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.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume and we consider stocks with greater than or equal to 500,000 volumes as more liquid. Liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

The reference date for all price data, volumes, technical indicators, support, and resistance levels is May 13, 2021.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

AUD: Australian Dollar

RSI: Relative Strength Index 

Note: Trading decisions require a thorough analysis by investors. Technical reports in general chart out metrics that may be assessed by investors before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se.  Past performance is neither an indicator nor a guarantee of future performance.

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