Company Overview: Johnson Matthey PLC (LON: JMAT) is an FTSE 250 index listed as a sustainable technology entity. The company's business portfolio is segmented into PGM Services, Clean Air, Value Businesses, Hydrogen Technologies, and Catalyst Technologies. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on this stock.

JMAT’s Technical Observation:

The chart for Johnson Matthey recently stabilized around GBX 1,300 levels and bounced to GBX 1,500 and currently consolidating with decent volumes. The Relative Strength Index (RSI) is currently at 40.53, indicating that the stock is not yet in the overbought territory, leaving room for further upward movement without immediate concerns of a pullback. Additionally, the volume has been consistently healthy, with notable spikes in the last few months, reflecting strong investor interest and market participation. This trend could continue as the stock stabilizes around its current level and possibly rallies further as investor sentiment remains optimistic. This combination of upward momentum, RSI strength, and healthy volume suggests a positive outlook for Johnson Matthey, with potential for the price to continue trending higher in the near term.

Key support levels are at GBX 1,293.60 and GBX 1,210.22, while resistance is expected near GBX 1,516.20 and GBX 1,627.40. This technical setup suggests the potential for continued upward movement and stability soon.

JMAT’s Daily Chart

As per the above-mentioned price action and technical indicators analysis, a ‘Buy’ rating has been given on: Johnson Matthey PLC (LON: JMAT) at the Closing Price of GBX 1,391.00, as of December 11, 2024. 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 & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: Investment decisions 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. Individuals can consider exiting from the stock if the Target Price or Stop loss mentioned as per the technical analysis has been achieved and is subject to the factors discussed above.

Note 3: Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided 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 rate risks, currency risks, social and political instability risks etc.

Note 4: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

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.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

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 against further losses in case of unfavorable movement in the stock prices.

The reference date for all price data, currency, technical indicators, support, and resistance levels is December 11, 2024. The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

GBP: British pound sterling

GBX: British pence sterling

RSI: Relative Strength Index

USD: United States dollar

Note: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.