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

Company Overview: Critical Elements Lithium Corporation (TSXV: CRE) is a Canada-based mineral exploration and development company focused on lithium and other critical minerals. The Company is primarily engaged in the acquisition, exploration, development, and processing of mining properties across Canada, with the goal of supporting the growing demand for sustainable energy and battery materials. Dragonfly Energy Holdings Corp. (NASDAQ: DFLI) is a lithium battery technology company specializing in advanced cell manufacturing, battery pack assembly, and complete system integration. Through its two brands Battle Born Batteries and Wakespeed the company offers a broad range of battery solutions designed for diverse applications, including renewable energy storage, recreational vehicles, marine, and industrial use. This 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

U.S. equity markets ended the week on a weak note, weighed down by broad-based sector losses. The S&P 500 fell 0.89% to close at 6,604.72, while the NASDAQ Composite declined 1.09% to 22,384.70, pressured by negative momentum in technology stocks. Moreover, the Russell 2000 dropped 1.54% to 2,411.04, though the move did little to offset persistent weakness in small-cap equities.

In Canada, the S&P/TSX Venture Composite Index advanced 1.70% week-to-date (WTD) to close at 920.18, extending its broader uptrend and reinforcing bullish momentum. On Thursday, gains across the basic materials, energy, and industrials sectors provided near-term support, highlighting selective areas of strength. However, persistent weakness in consumer non-cyclicals, consumer cyclicals, technology, real estate, financials, and healthcare partially offset these advances, tempering the index’s overall upside traction.

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: Critical Elements Lithium Corporation (TSXV: CRE) and Dragonfly Energy Holdings Corp. (NASDAQ: DFLI). The recommendations on these stocks are based on the generic insights, entry price, target prices, and stop-loss for the next 2-6 weeks:

Critical Elements Lithium Corporation (TSXV: CRE)

Noted below are the key price indicators for the stock:

Price Action Analysis (On the Daily Chart)

On the daily chart, CRE continues to hold above a rising trendline support, signaling sustained price strength and reinforcing the prevailing near-term bullish bias. The stock has been making steady progress and is now approaching a critical resistance zone near CAD 0.600, which could be tested over the next 2–6 weeks if current momentum persists. A decisive breakout above CAD 0.660 would serve as a strong bullish catalyst, likely drawing renewed buying interest and potentially setting the stage for an extended rally.

Technical Analysis (On the Daily Chart)

The 14-period RSI has rebounded to 74.54, pointing to strengthening bullish momentum. This uptick is further supported by robust weekly trading volumes, which highlight sustained buying interest and improving investor confidence. Price action also remains firmly above the 21-period Simple Moving Average (SMA), a key short-term trend indicator expected to act as near-term support and reinforce the positive technical outlook.

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, Critical Elements Lithium 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:

Dragonfly Energy Holdings Corp. (NASDAQ: DFLI)

Noted below are the key price indicators for the stock:

Price Action Analysis (On the Daily Chart)

On the daily chart, DFLI is holding firmly above a key horizontal support level, highlighting sustained price stability and reinforcing the near-term potential for further upside. The stock is nearing an important resistance zone around USD 0.470, which could be tested over the next 2–6 weeks if the current bullish structure remains intact. A decisive breakout above USD 0.530 would likely act as a strong bullish catalyst, attracting increased buying interest and potentially paving the way for a more sustained upward trend in the sessions ahead.

Technical Analysis (On the Daily Chart)

On the daily chart, the 14-period RSI stands at 68.50, reflecting strengthening bullish momentum while still leaving room for further upside. Weekly trading volumes remain steady, highlighting a consistent base of buying interest that underpins the potential for continued gains. The stock is also trading above its 21-period Simple Moving Average (SMA), which serves as dynamic support, reinforcing the prevailing uptrend and further strengthening the overall technical outlook.

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, Dragonfly Energy Holdings Corp. 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 September 25, 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.