Standard Chartered PLC 

Standard Chartered PLC (LON: STAN) is an international bank engaged in Retail, Commercial, Private, Corporate, and Institutional Banking.As per the previous recommendation on STAN on July 05, 2022, a‘Buy’rating was given on the stock at GBX 600.00 from the technical analysis standpoint. Stock made a high of GBX 620.60 on the same day and witnessed an upside gain of ~3.43 percent from the recommended entry level. After that, the prices entered the correction phase and recently started to move upward from the crucial support levels. 

Therefore, considering the recent price action and technical indicators analysis, a‘Hold’rating has been recommended on the stock at theclose price of GBX 608.00 (as on August 05, 2022) for the next couple of sessions (1-2 weeks).The summary of previous ‘Buy’ rating, revised target levels, and price movement since the previous recommendation forSTANis provided as below: 

Price Action Analysis (on the Weekly Chart) 

STAN’s prices took the support from a falling trend line and started to move upward, indicating the possibility of an upward direction.Now the next important resistance level appears at GBX 700.00 and prices may test the level in the short term (1-2 weeks). A further move above GBX 700.00 may extend buying in the stock. 

The RSI (14-period) shows a reading of ~59.76, indicating a positive stock trend.The CMP is above the 21-period and 50-period SMA with a positive crossover, further supporting an upward direction. 

Conclusion: 

Based on the above-mentioned price action and technical indicators analysis, Standard Chartered PLC is still looking technically well-placed on the chart, and a ‘Hold’rating has been given on the stock at the close price of GBX 608.00 (as on August 05, 2022).  

Warpaint London PLC  

Warpaint London PLC (LON: W7L) is a UK-based cosmetics business that operates through two divisions: largest and other.As per the previous recommendation on W7L on July 05, 2022, a‘Speculative Buy’rating was given on the stock at GBX 128.65 from the technical analysis standpoint. Stock made a high of GBX 135.00 on July 0, 2022 and witnessed an upside gain of ~4.94 percent from the recommended entry level. After that, the prices entered the consolidation phase and are sustaining above a downward sloping trend line breakout level. 

Therefore, considering the recent price action and technical indicators analysis, a‘Hold’rating has been recommended on the stock at theclose price of GBX 124.00 (as on August 05, 2022) for the next couple of sessions (1-2 weeks).The summary of previous ‘Speculative Buy’ rating, revised target levels, and price movement since the previous recommendation forW7Lis provided as below: 

Price Action Analysis (on the Weekly Chart) 

W7L’s are sustaining above a downward sloping trend line with the positive bias, indicating the possibility of an upward direction.Now the next important resistance level appears at GBX 150.00 and prices may test the level in the short term (1-2 weeks). A further move above GBX 150.00 may extend buying in the stock. 

The RSI (14-period) is hovering around mid-point and showing a reading of ~45.54. However, the CMP is below the 21-period and 50-period SMA, which may act as the resistance levels for the stock. 

Conclusion: 

Based on the above-mentioned price action and technical indicators analysis, Warpaint London PLC is still looking technically well-placed on the chart, and a ‘Hold’rating has been given on the stock at the close price of GBX 124.00 (as on August 05, 2022).  

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

Related Risks: This report may be looked at from a 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. 

Note 1: Individuals can consider exiting from the stock if the Target Price mentioned as per the technical analysis has been achieved and subject to the factors discussed above. 

Note 2: 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 and 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: In general, it is a level to protect further losses in case of unfavourable movement in the stock prices. 

Risk Reward Ratio: Risk reward ratio is the difference between an entry point to a stop loss and profit level. This report is based on ~60% Stop Loss of the Target 1 from the entry point. 

A trailing stop-loss is a modification of stop-loss in case of favourable movement in the price to protect the gains. Individuals can Trail the Stop-Loss as per the aforementioned levels if the stock price achieves more than 50% of the Target 1. Individuals should consider exiting from the position as per the Trailing Stop-Loss level if the price starts moving downwards after achieving more than 50% of the Target 1. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 05, 2022. 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 

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 the 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. 

Disclaimer 

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited. 

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414. 

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. 

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. 

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.