ThinkTechnical 21 September

In today's ThinkTechnical we'll take a look at the technical picture for materials technology and engineering company Archer Materials (AXE), fresh produce grower and distributer Costa Group (CGC), Chile-based copper play Hot Chili (HCH), biotech Mesoblast (MSB), and packaging company Pro-Pac Packaging (PPG).

 

Archer Materials is in a well-defined short term uptrend, as evidenced by the 21 EMA located above the 34 EMA and with each EMA rising. The long term uptrend is also well-defined, as evidenced by the 144 EMA located above the 233 EMA and with each EMA rising.

Static resistance will be encountered at the 10 Sep 2020 high of 0.670, and then at the 26 May 2019 high of 0.815.

Static support will be encountered at the 31 Aug 2020 high of 0.505, and then at the 04 Sep 2020 low of 0.430.

Today's low of 0.505 coincides with dynamic short term support expected to be encountered in the zone defined by the 21-34 EMAs, projected between 0.510 and 0.530. Whenever multiple support factors coincide, the market response at the zone defined by these factors tends to be stronger.

Targets are to the 26 May 2020 high of 0.815. Beyond 0.815, AXE is at all-time highs, and therefore targets are open ended. Note however, static resistance will likely be encountered at the 1.000 round number.

Traders may wish to buy at the static and dynamic support zones with stops set below these levels. If this cannot be achieved, then traders may have to consider buying on a breach of today's high of 0.565.

 

Costa Group is in a short term uptrend, as evidenced by the 21 EMA located above the 34 EMA. The long term trend is undefined, as evidenced the 144 EMA located below the 233 EMA but with each EMA rising. It is likely that these EMAs cross in the near future, therefore initiating a new long term uptrend.

Static resistance will be encountered at the 02 Sep 2020 high of 3.74, and then at the 12 Jul 2019 high of 4.06.

Static support will be encountered at the 18 Sep 2020 low of 3.23, which coincides with the 30 Jul 2020 high of 3.22, and then at the 19 Aug 2020 high of 3.12. Whenever multiple support factors coincide, the market response at the zone defined by these factors tends to be stronger.

The dynamic short term support zone is defined by the 21-34 EMAs, projected between 3.27 and 3.34.

The dynamic long term resistance zone is defined by the 21-34 EMAs, projected between 3.09 and 3.19. The price has been consistently rebounding lower out of the long term dynamic resistance zone since the long term downtrend began in January 2019. The key issue now, is that the price is currently trading above this zone. If this situation continues, the zone may well switch from offering dynamic long term resistance to offering dynamic long term support.

Targets are to the 02 Sep 2020 high of 3.74. Beyond 3.74, CGC has little in the way of key price action-based static resistance points to impede upside progress. Note however, static support will likely be ecountered at the 4.00 round number.

Traders may wish to buy at the static and dynamic support zones with stops set below these levels. If this cannot be achieved, then traders may have to consider buying on a breach of today's high of 3.38.

 

HOT Chili is in a well-defined short term uptrend, as evidenced by the 21 EMA located above the 34 EMA and with each EMA rising. The long term uptrend is also well-defined, as evidenced by the 144 EMA located above the 233 EMA and with each EMA rising.

Static resistance will be encountered at the 01 Sep 2020 high of 0.047.

Static support will be encountered at the 14 Sep 2020 low of 0.035.

The dynamic short term support zone is defined by the 21-34 EMAs, projected between 0.037 and 0.039. The price has been consistently rebounding higher out of the short term dynamic support zone since the short term uptrend began in June. This highlights the importance of this zone as a future area of potential dynamic short term support going forwards.

Targets are to the 01 Sep 2020 high of 0.047. Beyond 0.047, HCH has little in the way of key price action-based static resistance points to impede upside progress. Note however, static resistance will likely be encountered at the 0.100 round number.

Traders may wish to buy at the static and dynamic support zones with stops set below these levels. If this cannot be achieved, then traders may have to consider buying on a breach of today's high of 0.042.

 

Mesoblast is in a well-defined short term uptrend, as evidenced by the 21 EMA located above the 34 EMA and with each EMA rising. The long term uptrend is also well-defined, as evidenced by the 144 EMA located above the 233 EMA and with each EMA rising.

Static resistance will be encountered at the 15 Sep 2020 high of 5.04, and then at the 27 Aug 2020 high of 5.43.

Static support will be encountered at the 17 Sep 2020 low of 4.75, and then at the 11 Sep 2020 low of 4.53.

Note that static support at 4.75 coincides with dynamic short term support expected to be encountered in the zone defined by the 21-34 EMAs, projected between 4.65 and 4.79. Whenever multiple support factors coincide, the market response at the zone defined by these factors tends to be stronger. The price has been consistently rebounding higher out of the short term dynamic support zone since the short term uptrend began in April. This highlights the importance of this zone as a future area of potential dynamic short term support going forwards.

Beyond 5.43, MSB has little in the way of key price action-based static resistance points to impede upside progress. Note however, static resistance will likely be ecountered at the 6.00 round number.

Traders may wish to buy at the static and dynamic support zones with stops set below these levels. If this cannot be achieved, then traders may have to consider buying on a breach of today's high of 5.07.

 

Pro-Pac Packaging is in a short term uptrend, as evidenced by the 21 EMA located above the 34 EMA. The long term uptrend is well-defined, as evidenced by the 144 EMA located above the 233 EMA and with each EMA rising.

Static resistance will be encountered at the 25 Aug 2020 high of 0.190, and then at the 09 Jun 2020 high of 0.230.

Static support will be encountered at the 15 Sep 2020 low of 0.145.

The dynamic short term support zone is defined by the 21-34 EMAs, projected between 0.155 and 0.160.

The dynamic long term support zone is defined by the 21-34 EMAs, projected between 0.145 and 0.150. The price has been consistently rebounding higher out of the long term dynamic support zone since the long term uptrend began in August. This highlights the importance of this zone as a future area of potential dynamic long term support going forwards.

Targets are to the 09 Jun 2020 high of 0.230. Beyond 0.230, PPG has little in the way of key price action-based static resistance points to impede upside progress. Note however, static support will likely be encountered at the 0.500 round number.

Traders may wish to buy at the static and dynamic support zones with stops set below these levels. If this cannot be achieved, then traders may have to consider buying on a breach of today's high of 0.180.