Zak Mir takes a charting look at the latest requested stocks. Today’s selection includes Avacta, Greatland, and Mosman.
Quick technical check on three requested stocks. Overall there are a couple of names showing real upside potential while one remains disappointing. Below I walk through the key support and resistance levels, what the moving averages and RSI are telling us, and the levels I am watching next.
As always, do your own research and treat these as chart-based observations rather than hard recommendations.
Avacta — surprising strength, looking for a fresh move higher
Avacta has surprised to the upside since the second half of July. The reason I say that is simple: the share price has found support above the rising 50-day moving average on multiple occasions — in August, September and October. Those recurrent bounces above the 50-day are a sign of hidden strength.
Key levels and what I am watching
- Immediate congestion around 74p. Clearing a sustained end-of-day close above this area would be a bullish trigger.
- Near-term upside target around 90p. I could see that being reached as soon as the end of the year if the current momentum continues.
- Support to respect is the 65p area for November to date, with the 50-day moving average around 62p acting as the channel floor.
- RSI is showing an uptrend in the RSI window, reinforcing the bullish case so long as the price stays above the rising 50-day.
Bottom line: I am looking for a fresh move to the upside while the stock remains above the 50-day and the 65p support. The combination of the rising 50-day and a bullish RSI trend suggests the upside is favoured.
Greatland — consolidating after a gold-fuelled peak
Greatland pushed sharply higher last month as the gold price surged, and now it is settling back into support. That support looks to be the old June resistance zone, which is holding around the 350p area.
Technical picture and targets
- 50-day moving average sits around 351p, which is a solid level of support right now.
- Bear trap rebounds from just below the rising 50-day are a positive sign that buyers are stepping in.
- Recent resistance comes in around 374 to 375p. A clear break above that should open the path higher.
- Upside potential — the top of the channel could take the shares as high as 450p, perhaps by January at the current rate, or sooner if gold pushes to fresh highs.
- RSI has returned above neutral 50, which supports the case for a breakout so long as there is no end-of-day close back below the 50-day line.
Bottom line: the 350p zone looks fairly entrenched as support. As long as Greatland does not close back below the 50-day, I am looking for a breakout through 374-375p and a run toward the channel top near 450p.
Mosman — disappointing, wait for confirmation before buying
Mosman has been disappointing. The longer-term 200-day line is flat and the 50-day is still pointing down. The RSI remains below neutral 50 and the shares are essentially stuck around the 0.25 level.
What to watch
- Price action has seen interest on dips below 0.20 in June, July and September, but while the stock is lingering at current levels the upside looks limited.
- Technical triggers I want to see before getting bullish: the RSI needs to break back above neutral 50 and the share price should reclaim the 50-day moving average.
- Near-term upside is likely capped at the 50-day line around 0.28 unless those technical improvements occur.
Bottom line: if you are already in Mosman, watch whether the 50-day and RSI stage a recovery. If you are not invested, I would wait for the RSI to cross back above 50 and for the price to clear the 50-day before considering a position.
Summary
Two names on my radar for upside: Avacta and Greatland. Avacta has shown hidden strength with multiple bounces above the rising 50-day and could push toward 90p if it clears 74p. Greatland remains supported around 350p with the 50-day at 351p and a clear path to the channel top near 450p if it breaks 374-375p. Mosman is the laggard — the technicals need improvement, with RSI above 50 and a reclaim of the 50-day required before I would get more constructive.
I will be keeping an eye on end-of-day closes relative to the 50-day moving averages and the RSI readings for all three names. Those are the clues that will tell me whether the current setups can resolve into meaningful breakouts.
Disclaimer: The information presented in this article represents the views and analysis of the author and is provided for informational purposes only. It should not be interpreted as financial, investment, or legal advice. Investors should conduct their own due diligence and consult a qualified adviser before making investment decisions. Investing in AIM-listed companies involves risk, and past performance is not indicative of future results.
