Legend Mining Ltd. (ASX: LEG)
Legend Mining Ltd. is an Australian-based exploration and evaluation of mineral properties in Australia. The Company is exploring various products like nickel, cobalt, zinc, silver, and gold deposits. The current market capitalization as of 3 February 2023 stood at AUD 132.24 million.
Technical Analysis: LEG prices witnessed a breakout of a rising trendline by upside and sustaining above the breakout zone, indicating the possibility of a further upward move hereon. Moreover, the momentum oscillator RSI (14-period) is in positive territory and shows a reading of ~70.904. Further, prices are trading above the trend following indicators 21- Period SMA and 50- Period SMA, which may act as support levels in the near term. Immediate support levels are AUD 0.045 and AUD 0.039, while the key resistance levels are AUD 0.059 and AUD 0.065.
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 facing trendline resistance, and momentum oscillator analysis, it is prudent to recommend a 'Speculative Buy' rating on this stock. The stock was analyzed at the closing price of AUD 0.052 per share on 3 February 2023, up 8.333%.
Daily Technical Chart – LEG
Eastern Metals Limited (ASX: EMS)
Eastern Metals Limited is an Australian exploration company that operates within the base and precious metals exploration sector, and to progress into a mine operating company if exploration success ensues and the economics of project development are in favour. Copper, zinc, lead, silver, and gold are the metals of interest. The current market capitalization as of 3 February 2023 stood at AUD 4.67 million.
Technical Analysis: EMS prices are trading below the long-term downward-sloping trendline and facing the same resistance, indicating the possibility of a further downward move. Moreover, the momentum oscillator RSI (14-period) is below the mid-point and shows a reading of ~34.067, supporting negative bias. Further, prices are trading below the trend following indicators 21- Period SMA and 50- Period SMA, which may act as resistance levels in the near term. Immediate support levels are AUD 0.067 and AUD 0.059, while the key resistance levels are AUD 0.087 and AUD 0.095.
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 trading below the trendline, and momentum oscillator analysis, it is prudent to recommend a 'Watch' rating on this stock. The stock was analyzed at the closing price of AUD 0.077 per share on 3 February 2023, down 9.411%.
Weekly Technical Chart – EMS
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.
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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