Selan Exploration Technology Limited (SELAN) Stock - Complete Technical Analysis - Dec 11, 2024

Selan Exploration Technology (SELAN) Stock Analysis: Key Support, Resistance & Momentum Insights

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and it's essential to conduct thorough research or consult with a financial advisor before making investment decisions. Selan Exploration Technology Limited (SELAN) is currently trading at 904.50, which represents a healthy 124% increase from its 52-week low of 403.55. However, it is 16.11% off its 52-week high, suggesting a recent pullback or consolidation phase. This indicates some volatility, but the stock's long-term uptrend remains intact. With a P/E ratio of 23.9 and no dividend yield, SELAN is likely reinvesting earnings for growth. It has a solid ROE of 8.7% and ROCE of 12.3%, showcasing good financial performance.

On the technical front, the stock is consolidating between key support and resistance levels. The immediate support level sits near 901.10, where the stock bounced off recently. The 10-day EMA is also around this level, further strengthening this support. A further dip below this level could push the stock toward the 50-day SMA (866.39), signaling a potential bearish reversal. However, a rebound here could lead the stock back towards the 927.75 resistance or even test the 946.95 level.

Momentum indicators like the RSI at 55.26, and the Stochastic RSI at 87.98, suggest that there is room for upside momentum. The ADX at 30.61 confirms a strong trend, implying that traders could consider taking advantage of trend-following strategies. The Awesome Oscillator further confirms that there is positive momentum in the stock.

In terms of volatility, the Average True Range (ATR) suggests that SELAN can experience substantial daily price fluctuations, so traders need to be prepared for potentially sharp moves in either direction. With the stock currently above its moving averages and close to support, SELAN could see a breakout if it manages to hold above this level.

Traders should look for opportunities to buy around key support levels, especially near 901.10, with a potential upside target of 946.95. If the price falls below 892, consider revising your strategy as a downtrend might be imminent.