Company Overview: Cardinal Energy Limited (TSX: CJ) is a Canadian oil and natural gas company engaged in the acquisition, development, optimization and production of crude oil and natural gas in Alberta, British Columbia and Saskatchewan. Atlas Salt Inc. (TSXV: SALT) is a Canada-based mineral exploration company. Newport Exploration Ltd. (TSXV: NWX) is a Canada-based natural resource company engaged in acquiring and exploring resource properties. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these three stocks. 

CJ’s Technical Analysis:

CJ’s prices started to move upward from the crucial support zone of around CAD 6.39 and recently broke a short-term downward sloping trend line by an upside, indicating the possibility of an upside direction hereon. In addition, the RSI (14-period) is moving around the midpoint with a reading of 49.79. Prices are trading above the 21-day SMA but below the 50-day SMA, which may act as support and resistance levels, respectively.

Daily Technical Chart – CJ

Cardinal Energy Limited (TSX: CJ) was last covered in a report dated ’15 December 2022'. 

SALT’s Technical Analysis:

SALT’s prices are consolidating around a downward sloping trend line and facing the resistance of the same trend line, indicating the possibility of a sideways to negative movement in the stock. In addition, the RSI (14-period) is moving below the midpoint with a reading of 48.57, and the 21-day SMA is above the current market, further suggesting a sideways to negative direction.

Daily Technical Chart – SALT

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest, taking into consideration the risk-reward scenario.

NWX’s Technical Analysis:

NWX’s prices are consolidating below a downward sloping trend line and facing the resistance of the same trend line, indicating the possibility of a sideways to negative movement in the stock. In addition, the RSI (14-period) is moving around the midpoint with a reading of 50.13, and prices are trading around the 21-day and 50-day SMAs, further suggesting a sideways direction.

Daily Technical Chart – NWX

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest, taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report.

Note 3: Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period, prices are currently in a bullish trend (Vice – Versa).

The Red colour line reflects the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 50-period, prices are currently in a bullish trend (Vice – Versa).

The Orange/ Yellow colour line represents the Trendline.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period), which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status, while a reading of 30 or below suggests an oversold status.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.