US and Canadian markets settled this week on a mixed note, Two stocks to consider – CNC, ORZCF

Company Overview: Canada Nickel Company Inc. (TSXV: CNC) is spearheading the development of next-generation nickel-cobalt sulphide projects, strategically positioned to meet the rapidly growing demand from the electric vehicle (EV) and stainless steel sectors. Orezone Gold Corporation (OTC: ORZCF) is a Canada-based gold producer focused on West Africa, with a primary emphasis on the Bomboré Gold Mine in Burkina Faso, of which it holds a 90% ownership interest. The company is actively engaged in mining, development, and exploration activities at Bomboré, one of the region’s largest undeveloped gold deposits. The Report covers the Price Action, Technical Indicators Analysis along with the Stop Loss Levels, Target Prices, and Recommendations on these two stocks. 

Global Markets Wrap-Up

As of May 22, 2025, major U.S. equity indices posted subdued week-to-date (WTD) performances, pressured by broad-based sector weakness. The S&P 500 fell 2.04%, closing at 5,842.01, while the NASDAQ Composite declined 1.49% to finish at 18,925.73, primarily due to softness in the technology sector. The Russell 2000, which tracks small-cap stocks, registered the steepest loss among the benchmarks, sliding 3.20% to end the week at 2,045.56.  

As of May 22, the S&P/TSX Venture Composite Index (TSX: ^JX) recorded a week-to-date (WTD) gain of 0.85%, closing at 678.55, continuing its broader upward trajectory. Thursday’s session reflected a mixed market tone. Strength in industrials, consumer non-cyclicals, and energy provided near-term support and helped sustain the index's positive momentum. However, this was counterbalanced by continued weakness in several key sectors, including healthcare, financials, technology, consumer cyclicals, real estate, and basic materials. The drag from these sectors limited broader market upside and reflected ongoing investor caution.

Considering the US and Canadian markets’ performance over the week, following the significant global macros and data front, two stocks that fit the criteria on the technical framework: Canada Nickel Company Inc. (TSXV: CNC) and Orezone Gold Corporation (OTC: ORZCF). The recommendations on these stocks are based on the generic insights, entry price, target prices, and stop-loss for the next 2-6 weeks:

Canada Nickel Company Inc. (TSXV: CNC)

Noted below are the key price indicators for the stock:

Price Action Analysis (On the Daily Chart)

On the daily chart, CNC continues to trade above a key descending support trendline, signaling sustained price strength and reinforcing the potential for continued upside in the near term. The stock is gradually approaching a critical resistance level near CAD 1.02, which could be tested within the next 2 to 6 weeks, assuming current bullish momentum holds. A confirmed breakout above this resistance zone would likely serve as a strong bullish catalyst, attracting renewed buying interest and potentially paving the way for an extended rally beyond that threshold.

Technical Analysis (On the Daily Chart)

The 14-period Relative Strength Index (RSI) for the stock is currently at 45.52, showing signs of recovery and suggesting a potential shift toward bullish momentum. This emerging strength is further supported by strong weekly trading volumes, indicating sustained buying interest and growing investor confidence. However, the stock remains below its 21-period Simple Moving Average (SMA) a key trend-following indicator which may continue to act as resistance in the near term.

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, Canada Nickel Company Inc. is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. The summary of recommendations is as follows:

Orezone Gold Corporation (OTC: ORZCF)

Noted below are the key price indicators for the stock:

Price Action Analysis (On the Daily Chart)

On the daily chart, ORZCF continues to trade above a key horizontal support trendline, signaling sustained price stability and reinforcing the potential for continued upside momentum in the near term. The next significant resistance level is located around USD 1.000, which could be tested within the next 2 to 6 weeks if the current bullish structure remains intact. A decisive breakout above this zone would likely act as a bullish catalyst, drawing increased buying interest and potentially setting the stage for a more sustained uptrend.

Technical Analysis (On the Daily Chart)

On the daily chart, the 14-period Relative Strength Index (RSI) is currently at 59.37, reflecting bullish momentum and signaling room for further upside. Weekly trading volumes remain consistent, highlighting a steady base of buying interest that supports the potential for continued gains. Additionally, the stock is trading above its 21-period Simple Moving Average (SMA), which now acts as a dynamic support level, reinforcing the strength of the current uptrend and improving the overall technical outlook.

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, Orezone Gold Corporation is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. The summary of recommendations is as follows:

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.

Upcoming Major Global Economic Events 

Market events occur daily depending on the data's frequency and generally include updates on CPI, PPI, Core Retail Sales, Unemployment Data, etc. The upcoming week's major global economic events that could impact the S&P/TSX Venture Composite Index and listed stocks' prices are noted below.

Related Risks: This report may be looked at from a high-risk perspective and recommendation is 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 rates risks, currency risks, social and political instability risks etc.

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

Kalkine reports are prepared based on the stock prices captured from either REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’ 

Note 1: Individuals can consider exiting from the stock if the Target Price or Stop loss 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 color line reflects the 21-period moving average, while the red color 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 color 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 color 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. Liquidity in stocks helps in easier and faster execution of the order.

The Orange color 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 unfavorable movement in the stock prices.

Risk Reward Ratio: The risk reward ratio is the difference between an entry point to a stop loss and profit level and the report is based on ~80% Stop Loss of the Target 1 from the entry point.

A trailing stop-loss is a modification of stop-loss in case of favorable movement in the price to protect the gains. Individual can Trail the Stop-Loss as per the levels if the stock price achieves more than 50% of the Target 1. Individual 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 May 22, 2025. The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

CAD: Canadian Dollar

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 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.