Exit Case: Ampol Limited (ASX: ALD)
Overview: Ampol Limited (ASX: ALD) is purchasing, refining, distributing, and marketing petroleum products in Australia, New Zealand, Singapore, and the United States.
ALD has been a part of the ‘Value Model Portolio’ since 30 November 2022, however, considering the recent rally in the stock, support & resistance levels, and 16.05% upside from the entry price, an ‘Exit’ is recommended from the stock at the closing market price of AUD 33.18, as on 1 March 2023.
Source: REFINITIV as on 1 March 2023
Ampol Limited (ASX: ALD), part of Kalkine’s Value Model Portfolio, has crossed resistance 1, where an exit case emerges.
1.1 Support and Resistance Summary as provided in our last published report dated 16 January 2023.
1.2 Five-Year Technical Price Chart (ASX: ALD)
Five-Year Technical Price Chart (as of 1 March 2023). Source: REFINITIV, Analysis: Kalkine Group
2. New Entry Case: Grange Resources Limited (ASX: GRR)
Overview: Grange Resources Limited (ASX: GRR) owns and operates integrated iron ore mining and pellet production business in Australia and internationally.
Technical Analysis: On the daily chart, GRR prices have started to move upside after taking support from the rising trendline. Moreover, the momentum oscillator RSI (14-period) is moving above the midpoint and showing a reading of ~41.40 level, indicating positive momentum. The prices are trading above the trend-following indicators 21- period SMA, which may act as a support level.
GRR is recommended as a new entry in the ‘Value Model Portolio’ as on 1 March 2023. In the latest update, the company announced a final dividend of AUD 0.020 per share with an Ex-date of 10 March 2023 and a pay-date on 28 March 2023 (100% Franking). As per the financial report for the year ended 31 December 2022, the mining activities have centred on the cutbacks in both North Pit and Centre Pit, following the completion of North Pit Stage 6. Besides this, On 12 December 2022, GRR advised the market that it has entered into a binding contract with its joint venture partner, SRT Australia Pty Ltd, to acquire SRT’s 30% interest in the Southdown Magnetite Project, which will translate into 100% ownership in the Project. Considering, above mentioned factors, technical analysis, support & resistance levels, and key risks associated with the company, an ‘Entry’ is recommended in the ‘Value Model Portfolio’ at the closing market price of AUD 0.99, as on 1 March 2023.
Source: REFINITIV as on 1 March 2023
Grange Resources Limited (ASX: GRR), is identified as the new entry to our Value Model Portfolio.
2.1 Support and Resistance Summary as on 1 March 2023
*Resistance 2 can be considered as an indicative exit case. However, individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements.
2.2 Five-Year Technical Price Chart (ASX: GRR)
Five-Year Technical Price Chart (as of 1 March 2023). Source: REFINITIV, Analysis: Kalkine Group
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency as of 1 March 2023. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings.
Disclaimer
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