Yancoal Australia Ltd. (ASX: YAL)

YAL is involved in development and production of underground and open cut coal mines in the global seaborne market. The current market capitalization as of 10 February 2023 stood at AUD 7.196 billion.

Technical Analysis: On a weekly chart, YAL prices broke an upward sloping trend line by downside and the prices are sustaining below the breakout level from past one week. Moreover, the momentum oscillator RSI (14-period) is trading at ~46.354, indicating bearish momentum for the stock price. An important support level for the stock, is placed at AUD 4.850 while the key resistance level is placed at AUD 6.080.

Considering the company’s current price levels sustaining above an upward sloping trend line by downside, and momentum oscillator analysis, it is prudent for the individuals to ‘watch’ this stock; hence a ‘Watch’ rating is suggested. The stock was analysed as per the closing price of AUD 5.45 per share on 10^th February 2023, up by 5.87% from the prior closing.

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.

Weekly Technical Chart – YAL

Eagers Automotive Ltd. (ASX: APE)

APE is engaged in the sales of new and used motor vehicles, distribution and sale of parts, accessories and car care products, repair and servicing of vehicles, provision of extended warranties and the ownership of property and investments. The current market capitalization as of 10 February 2023 stood at AUD 2.763 billion.

Technical Analysis: On a weekly chart, APE prices broke a symmetrical triangle pattern by downside and the prices are sustaining below the breakout level from one week. Prices are also trading above its 21-period SMA that further support the watch recommendation. Moreover, the momentum oscillator RSI (14-period) is hovering at ~42.171, indicating bearish momentum for the stock price. An important support level for the stock, is placed at AUD 10.000 while the key resistance level is placed at AUD 11.910.

Considering the company’s current price levels sustaining above a horizontal trend line resistance, and momentum oscillator analysis, it is prudent for the individuals to ‘watch’ this stock; hence a ‘Watch’ rating is suggested. The stock was analysed as per the closing price of AUD 10.820 per share on 10^th February 2023, down by 0.82% from the prior closing.

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. 

Weekly Technical Chart – APE

Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator 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 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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