What is Happening to TNG LTD’s Share Price Lately?

What’s Happening to TNG’s Share Price?

TNG reported yesterday that geotechnical drilling has commenced at its flagship Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory. Shares in TNG Ltd have been trading higher over the last few days, breaking out of a sideways pattern it’s been in over the last month and a half.

TNG have a multi-commodity resource portfolio in the Northern Territory and Western Australia. However, its main project, Mount Peake, is one of the largest vanadium projects in Australia, strategically located close to existing infrastructure, including the Alice Springs-Darwin Railway and Stuart Highway.

Vanadium is a ‘miracle metal’ mostly used to impart strength, hardness and water resistance to steel. It’s also used in the titanium alloys found in jet engines, airframes and other high-end specialty materials. Whilst Vanadium is mostly used to strengthen steel, the metal could see its demand dramatically increase because of its ability to create powerful ‘supercharged’ batteries for the growing electrical vehicle market.

Miracle metals and supercharged batteries may be a good story, but don’t get lost in the narrative. Trade the chart, not the story.

What does the chart look like?

Here’s the daily chart of TNG:

TNG Share Price

Source: STEX

It’s broken out of its sideways pattern for the last month and a half on news that drilling is underway. If you have an ability to read a chart, it won’t have been a total surprise it made a top at 17 cents on news. That’s of course, if you can read a chart. Go here to find out how. You owe it to yourself to obtain this skill.

What now for TNG shares?

The news simply confirming that drilling is underway, which will help complete the feasibility project, which is expected to be finished by mid year. For now, we just have to wait and see how it reacts to the news and look for some technical indicators that will confirm what the trend is from here.

Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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