Talga Resources Limited Stock Forecast
Talga Resources Limited stock downgraded from Buy Candidate to Hold/Accumulate after Monday trading session.
(Updated on May 20, 2024)
The Talga Resources Limited stock price fell by -0.629% on the last day (Monday, 20th May 2024) from $0.795 to $0.790. During the last trading day the stock fluctuated 9.68% from a day low at $0.775 to a day high of $0.85. The price has fallen in 5 of the last 10 days but is still up by 9.72% over the past 2 weeks. Volume has increased on the last day by 148 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 2 million shares were bought and sold for approximately $1.19 million.
The stock lies the upper part of a wide and falling trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break up at the top trend line at $0.792 will firstly indicate a slower falling rate, but may be the first sign of a trend shift. Given the current short-term trend, the stock is expected to fall -19.82% during the next 3 months and, with a 90% probability hold a price between $0.512 and $0.635 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
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TLG.AX Signals & Forecast
The Talga Resources Limited stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock, but the stock has a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections down, there will be some support from the lines at $0.706 and $0.720. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Friday, May 17, 2024, and so far it has fallen -0.629%. Further fall is indicated until a new bottom pivot has been found. Talga Resources Limited gained volume on the last day, but on falling prices. In technical terms, this is called divergence and may be an early warning. In some cases, increasing volume on falling prices may be considered positive, but that is mainly in typical "sell-offs".
Support, Risk & Stop-loss for Talga Resources Limited stock
On the downside, the stock finds support just below today's level from accumulated volume at $0.750 and $0.730. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Talga Resources Limited finds support just below today's level at $0.750. If this is broken, then the next support from accumulated volume will be at $0.730 and $0.705.
This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.0750 between high and low, or 9.68%. For the last week, the stock has had daily average volatility of 7.78%.
Our recommended stop-loss: $0.767 (-2.91%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 5 days ago.)
Trading Expectations (TLG.AX) For The Upcoming Trading Day Of Tuesday 21st
For the upcoming trading day on Tuesday, 21st we expect Talga Resources Limited to open at $0.81, and during the day (based on 14 day Average True Range), to move between $0.747 and $0.83, which gives a possible trading interval of +/-$0.0428 (+/-5.42%) up or down from last closing price. If Talga Resources Limited takes out the full calculated possible swing range there will be an estimated 10.84% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $0.795 (0.63%) than the support at $0.750 (5.06%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Talga Resources Limited stock A Buy?
Talga Resources Limited holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Hold/Accumulate candidate.
Current score: 0.148 Hold/Accumulate Downgraded
Predicted Opening Price for Talga Resources Limited of Tuesday, May 21, 2024
| Fair opening price May 21, 2024 | Current price |
|---|---|
| $0.81 ( 1.90%) | $0.790 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for TLG.AX
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.88 | 11.39 % | |
| R2 | 0.85 | 7.77 % | ||
| R1 | 0.83 | 5.53 % | ||
| Current price: | 0.790 | |||
| Support | S1 | 0.776 | -1.73 % | |
| S2 | 0.759 | -3.97 % | ||
| S3 | 0.730 | -7.59 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0.91 | 14.56 % | |
| R2 | 0.88 | 10.76 % | ||
| R1 | 0.795 | 0.633 % | ||
| Current price | 0.790 | |||
| Support | S1 | 0.750 | -5.06% | |
| S2 | 0.730 | -7.59% | ||
| S3 | 0.705 | -10.76% |
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