TNG Limited – Chart Review

This is a chart review of a micro-cap, Northern Territory mining stock, floated 20 years ago.

Between 2005 and the onset of the GFC the share price rallied to peak at $1.01 before falling back to support at about 4.3 cents.

Since March 2014 the Mt Peak vanadium, titanium and iron ore project has galvanised widespread interest in its prospects, with the share-price reaching 34 cents.

A recent $5.5 million capital raising has been well supported, and is now complete.  The present share-price weakness below the offer price is disappointing but it provides an opportunity for retail investors to enter, and profit from any re-rating of the share-price in the coming months.

TNG250914-page-001

Share-price stabilising

Share-price stabilising

 

Observations

  • This daily chart shows the downtrend of the past three months with divergence of the multiple moving averages.
  • In the past two weeks, trading has settled into a narrow range between 7.5 cents and 8.3 cents.
  • This is significantly lower than the 10 cent issue price of the new share placement, now complete, which has raised $5.5 million in funds.
  • With the loss of downward momentum, the short-term moving averages, are converging, and seem to be now about to cross over and turn upwards again.
  • There appears to be fairly firm support for the share-price at 7.5 cents.

 

 

 

Trading plan

  • Enter with break-out above resistance of the trading range at 8.3 cents.
  • Set a stop/loss position at 7 cents.
  • Add to position if and when the issue price of 10 cents is exceeded.
  • Consider taking profit when initial target at 11.5 cents is attained.

 

http://resourcesrisingstars.com.au/infopage/4252

http://clients2.weblink.com.au/clients/tngltd/article.asp?asx=TNG&view=6701962

 



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  1. TNG Update | Technically Speaking

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