Incannex Healthcare Limited (ASX: IHL)

IHL is a clinical-stage pharmaceutical company, mainly involved in medicinal cannabis products and psychedelic medicine therapies. The current market capitalization as of 22^nd September 2021 was reported at $404.39 million and the share price stood at $0.355 per share.

Financial & Operational Updates – As per the annual report FY21, published on 7^th September 2021, revenue from ordinary activities increased in triple-digit by ~213.7% Y-o-Y to $1.90 million in FY21 versus in $604.88kin FY20. Despite this rise in revenue, the net losses increased by ~73.8% Y-o-Y to $8.16 million in FY21 versus net losses of $4.70 million in FY20, primarily led by the rise in Advertising & Promotion costs, Research costs due to the introduction of a new segment in psychedelic medicines and therapies in November 2020. Meanwhile, the cash at the end of FY21 was reported at $9.12 million versus $3.60 million at the end of FY20.

Technical Analysis: On a daily chart, IHL has shown an uptrend from the start of the year, but after making a new 52-week high of $0.450 in September 2021, a downside correction started in the stock. Prices are currently trading between 21-period SMA and 50-period SMA that indicates indecision in the stock. The RSI (14-period) is moving around a mid-range territory at ~45.24 levels, thereby implying more correction in the short-term. Immediate support and resistance levels are $0.320 and $0.395 respectively.

After considering the company’s financial performance in FY21, and the RSI level, investing in this stock at current levels should be monitored as per the support levels, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of $0.355 per share, down by ~2.74%, as of 22nd September 2021.

Daily Technical Chart – IHL

Source: REFINITIV

Telix Pharmaceuticals Limited (ASX: TLX)

Incorporated in 2017, TLX is an Australian radiopharmaceutical company engaged in developing diagnostic and therapeutic products with the use of Molecularly Targeted Radiation (MTR) to treat cancer. Its market capitalization stood at $1.96 billion as of September 22^nd, 2021, at a stock price of $6.80 per share.

Financial & Operational Updates – On 14^th September 2021, it was announced that FDA approved its Phase II Kidney Cancer Therapy study and has accepted Investigational New Drug Application (IND). As per the announcement on 13^th September 2021, the company entered into an exclusive commercial agreement for distribution of its prostate cancer investigational imaging product “Illuccix” with Italy based Radius S.r.I. As per the Half Yearly Report filed on 19^th August 2021, revenue from ordinary activities was up by ~81% Y-o-Y and reported as $2.91 million in 1HFY21 versus in $1.60 million in 1HFY20. In contrary, net losses increased by ~78% Y-o-Y to $32.51 million as compared to net losses of $18.30 million in 1HFY20. Cash at the end of 1HFY21 was reported as $49.61 million versus $77.94 as of 31^st December 2020.

Technical Analysis: TLX’s price has suffered a minor pullback in mid-July and after that made a new 52-week high of $7.65 in September-21. On the daily chart, prices are hovering around the 21-period SMA. The momentum oscillator daily RSI (14-period) is trading in at 52.738 level; however, forming a negative divergence with the price action which indicates a possibility of a downside correction for the short-term.

After considering the company’s financial performance in 1HFY21, daily and weekly RSI levels, investing in this stock at current levels must be considered with a cautious approach, hence it's suggested to ‘Watch’ and re-evaluate the stock once the prices approach the support & resistance levels. The stock was analyzed as per the closing price of $6.8 per share, down by ~2.44%, as of 22^nd September 2021.

Daily Technical Chart – TLX

Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Purple 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.

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