Liontown Resources Limited (ASX: LTR)

Liontown Resources Limited is a battery metals exploration and development company focused on developing its Kathleen Valley Project to a standalone mine. The current market capitalization as of 14^th December 2022 stood at AUD 3.73bn.

Technical Analysis: On the daily chart, LTR prices witnessed a breakout of a rising trendline by downside, indicating the possibility of further downside movement hereon. The momentum oscillator RSI (14-period) shows a reading of ~37.154. Further, the prices are trading below the trend-following indicators 21- period and 50- period SMA, which may act as resistance zones in the near term. An important support level for the stock is AUD 1.53, while the key resistance level is AUD 1.90.

Considering the company’s current price levels are sustaining below the rising trendline, momentum oscillator analysis, it is prudent to recommend a 'Watch' rating on this stock. The stock was analyzed at the closing price of AUD 1.715 per share on 14^th December 2022 up ~0.882%.

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.

Daily Technical Chart – LTR

Arafura Resources Limited (ASX: ARU)  

Arafura Resources Limited (ASX: ARU) is engaged in mineral exploration and development. The current market capitalization as of 14^th December 2022 stood at AUD 884.01mn.

Technical Analysis: On the daily chart, ARU prices may face resistance at the horizontal trendline. The momentum oscillator RSI (14-period) shows a reading of ~69.702 and reflecting a negative reversal. Further, the prices are trading below the trend-following indicators 21- period and 50- period SMA, which may act as resistance zones in the near term. An important support level for the stock is AUD 0.47, while the key resistance level is AUD 0.58.

Considering the company’s current price levels are sustaining below the horizontal trendline, momentum oscillator analysis, it is prudent to recommend a 'Watch' rating on this stock. The stock was analyzed at the closing price of AUD 0.525 per share on 14^th December 2022 up 0.17.977%.

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.

Daily Technical Chart – ARU

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. 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.

Disclaimer

Kalkine New Zealand Limited is a Financial Advice Provider (“FAP”) and is authorised by a Transitional FAP license issued by Financial Markets Authority (“FMA”) to provide financial advice. Kalkine provides only general financial advice through its research reports following a person becoming a member. The reports contain buy/sell/hold and other recommendations in relation to equity financial products. The recommendations and opinions [on this website] / [in this report] do not take into account any of your investment objectives, financial situation or needs. Before you make a decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement from the product issuer. You should consider the appropriateness of advice taking into account your own objectives, financial situation and needs and seek independent financial advice before making any financial decisions. If you act on the advice in the research reports, you may have to pay fees, expenses or other amounts (but not to Kalkine).  Further information about the complaints and dispute resolution process, as well as information about Kalkine’s duties are available on Kalkine’s website.  Please read our Financial Advice Provider (FAP) disclosure statement and Complaints Handling Guide, which are available on the website.