Technical Analysis: 12 April 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
12 April 2021, 11:00 AM

Newcrest Mining (NCM) – Bullish breakout

NCM has been trading sideways over the past two years fluctuating between $20.70 and $38.87.

The current secondary down trend has retraced close to its key support where strong buying interest has been building over the past month.

The medium-term down trend line has been broken upwards recently showing that the down is deteriorating and is likely to reverse direction.

The RSI indicator broke above its bear market resistance suggesting that higher prices are likely to unfold in the months ahead.

The current shortterm up swing broke above its minor resistance of $25.46 suggesting that a short-term bottom is now in place.

Given the improvement in the momentum conditions and in the price structure we are of the view that the down trend is reversing course and that higher prices are likely over the medium-term.

The first potential upside price target is $28.00 followed by $30.00.

Silver Lake Resources (SLR) – Bullish breakout

SLR has been trading in a primary up trend since March 2018 which is still firmly intact.

The recent secondary down trend has retraced to its long-term up trend line crossing at $1.30 where strong buying interest arose in February 2021.

The price has rallied strongly over the past two months with Friday’s price action completing a clear bottom reversal pattern.

The RSI indicator broke above its bear market resistance also suggesting that higher price levels are likely over the medium-term.

The first potential upside price target is $2.00 followed by $2.20. The weekly MACD indicator has turned higher from oversold levels suggesting that the price is likely to trade higher over the long-term.

Given the constructive price action and momentum conditions on the weekly and daily charts, we are of the view that a strong secondary up trend is likely to unfold in the coming six to twelve months.

Therefore, we believe that $2.60 level is likely to be reclaimed by the year end.

West African Resources (WAF) – Bullish breakout

The strong primary up trend has lost momentum over the past year and the price has been trading sideways, fluctuating between $0.72 and $1.23.

The current short-term up swing broke above its resistance of $0.91 suggesting that the correction from the October 2020 high is complete and that higher price levels are likely to unfold in the months ahead.

The first potential upside price target is $1.10 followed by $1.20. The RSI indicator has reached overbought territory suggesting that a minor pull back is likely in the short-term.

We see such potential short-term share price weakness as an opportunity to buy the stock.

Alkane Resources (ALK) – Ready for a breakout

ALK has been trading in a secondary down trend since September 2020 which is still technically intact.

A higher low has formed on the daily chart over the past week, which is the first positive sign since the correction has started.

The daily RSI indicator completed a bottom reversal signal showing that momentum has improved. The weekly RSI has reached oversold territory suggesting that the price is likely to bounce in the months ahead.

A break above minor resistance of $0.78 is likely to occur and would confirm that a small bottom is in place.

The first potential upside price target based on the breakout is $0.90. Over the medium-term, levels to $1.10 are achievable.

Regis Resources (RRL) - Double Blessed Buy

RRL has been trading in a secondary up trend since July 2020 which is still technically intact.

A large bullish divergence between the price and the RSI indicator has formed over the past six months showing that momentum is improving.

The recent price action has retraced to its previous key support of $2.90 where initial buying interest is likely to arise.

The down trend has lost momentum over the past few weeks and the price has been in the process of building a small base.

Friday’s price action broke above minor resistance of $3.16 suggesting that higher price levels are likely to unfold in the weeks ahead.

The RSI indicator completed a large ascending triangle also pointing to a rally in the near-term. The first potential upside price target is $3.60 followed by $4.00 over the medium-term.

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Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.


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