ThinkTechnical 25 September


A topical look at technical analysis factors for a number of ASX stocks of interest for 25 September.



In today's ThinkTechnical we'll take a look at the technical picture for a range of stocks of different sizes (i.e from mega-cap BHP Group (BHP) down to micro-cap New Zealand Coastal Seafoods (NZS)) and also from a range of different sectors.

There are six in total, Archer Materials (AXE), Bega Cheese (BGA), BHP Group (BHP), Clean Teq (CLQ), Cirralto (CRO), New Zealand Coastal Seafoods (NZS) and S2 Resources (S2R).

 

Archer Materials (AXE)

Archer Materials (AXE) 25 Sep 2020

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 24 Sep 2020 low of 0.525, the 31 Aug 2020 low of 0.505, which coincides with the 31 Aug 2020 high of 0.505, and then at the 04 Sep 2020 low of 0.430.

Note that static support at 0.525 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.

 

Bega Cheese (BGA)

Bega Cheese (BGA) 25 Sep 2020

Bega Cheese 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 23 Sep 2020 high of 5.35, and then at the 03 Sep 2020 high of 5.63.

Static support will be encountered at the 03 Jul 2020 low of 4.99, which coincides with the 5.00 round number.

The dynamic short term support zone is defined by the 21-34 EMAs, projected between 5.15 and 5.25. The price has been consistently rebounding higher out of the short term dynamic support zone since the short term uptrend began in August. This highlights the importance of this zone as a future area of potential dynamic short term support going forwards.

Beyond 5.63, BGA 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 5.35.

 

BHP Group (BHP)

BHP Group (BHP) 25 Sep 2020

BHP Group is in a well-defined short term downtrend, as evidenced by the 21 EMA located below the 34 EMA and with each EMA declining. 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 16 Sep 2020 high of 38.37, the 11 Aug 2020 high of 40.52, and then at the 22 Jan 2020 high of 41.47.

Static support will be encountered at the 24 Sep 2020 low of 36.46, the 11 Sep 2020 low of 36.38, and then at the 04 Sep 2020 low of 36.07.

The dynamic short term resistance zone is defined by the 21-34 EMAs, projected between 37.45 and 37.55. The price has been consistently rebounding lower out of the short term dynamic resistance zone since the short term downtrend began in August. 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 short term resistance to offering dynamic short term support.

The dynamic long term support zone is defined by the 21-34 EMAs, projected between 36.15 and 36.50. 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 22 Jan 2020 high of 41.47. 

Given the uncertainty in relation to the short term trend, short term traders should remain neutral. Long term traders may wish to buy at static support and at the dynamic long term support zone with stops set below these levels. If this cannot be achieved, then long term traders may have to consider buying on a breach of today's high of 37.80.

 

Clean Teq (CLQ)

Clean Teq (CLQ) 25 Sep 2020

Clean Teq 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 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 11 Sep 2020 low of 0.270, and then at the 08 Sep 2020 high of 0.385.

Static support will be encountered at the 24 Sep 2020 low of 0.250, and then at the 22 Jul 2020 high of 0.235.

Note that static support at 0.250 coincides with dynamic short term support expected to be encountered in the zone defined by the 21-34 EMAs, projected between 0.250 and 0.270. Whenever multiple support factors coincide, the market response at the zone defined by these factors tends to be stronger.

The dynamic long term support zone is defined by the 21-34 EMAs, projected between 0.210 and 0.230. The price has been consistently rebounding lower out of the long term dynamic resistance zone since the long term downtrend began in July 2018. 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 08 Sep 2020 high of 0.385. Beyond 0.385, CLQ 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 0.500 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 0.275.

 

Cirralto (CRO)

Cirralto (CRO) 25 Sep 2020

Cirralto 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 31 Aug 2020 high of 0.048.

Static support will be encountered at the 22 Sep 2020 low of 0.030, and then at the 18 Sep 2020 low of 0.029.

Note that static support at 0.030 coincides with dynamic short term support expected to be encountered in the zone defined by the 21-34 EMAs, projected between 0.029 and 0.032. Whenever multiple support factors coincide, the market response at the zone defined by these factors tends to be stronger.

Targets are to the 31 Aug 2020 high of 0.048. Beyond 0.048, CRO 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 0.038.

 

New Zealand Coastal Seafoods (NZS)

New Zealand Coastal Seafoods (NZS) 25 Sep 2020

New Zealand Coastal Seafoods 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 10 Sep 2020 high of 0.059, and then at the 11 Aug 2020 high of 0.084.

Static support will be encountered at the 22 Sep 2020 low of 0.048, and then at the 07 Sep 2020 low of 0.044.

Note that static support at 0.048 coincides with dynamic short term support expected to be encountered in the zone defined by the 21-34 EMAs, projected between 0.047 and 0.050. 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 July. This highlights the importance of this zone as a future area of potential dynamic short term support going forwards.

Targets are to the 11 Aug 2020 high of 0.084. Beyond 0.084, NZS is at all-time highs, and therefore targets are open ended. Note however, static support 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 0.052.

 

S2 Resources (S2R)

S2 Resources (S2R) 25 Sep 2020

S2 Resources 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 0.265.

Static support will be encountered at the 22 Sep 2020 low of 0.220, which coincides with the 15 Sep 2020 low of 0.220, which coincides with the 18 Aug 2020 low of 0.220. Whenever multiple support factors coincide, the market response at the zone defined by these factors tends to be stronger.

Note that static support at 0.220 coincides with dynamic short term support expected to be encountered in the zone defined by the 21-34 EMAs, projected between 0.210 and 0.230. The price has been consistently rebounding higher out of the short term dynamic support zone since the short term uptrend began in July. This highlights the importance of this zone as a future area of potential dynamic short term support going forwards.

Beyond 0.265, S2R 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 0.500 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 0.265.



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