4DMedical Limited (ASX: 4DX)

A medical technology company, 4DX is involved in non-invasive respiratory imaging solution development by using its four-dimensional imaging. Its market capitalization as of 13^th December 2021 stood at AUD 350.44 million.

Financial & Operational Updates – On 9^th December 2021, it completed its first Respiratory Scans on commercial basis of I-Med. As per its quarterly report on 25^th October 2021, it broadened its pathways for potential commercialisation by signing a contract with Novartis. It successfully completed its Phase-I of XV LVAS clinical pilot program and also partnered with Kailo Medical for information automation of X-Ray Equipments. It reported its receipts for 1QFY22 as nil and closed its accounts with a cash balance of ~AUD 72.15 million at the end of 30^th September 2021 versus ~AUD 80.88 million at the end of 30^th June 2021. As per the Annual Report, its revenue from ordinary activities was recorded as ~AUD 216.97k for FY21 versus ~AUD 1.23 million in FY20. Moreover, it reported a net loss of ~AUD 21.42 million in FY21 versus loss of  ~AUD 21.98 million in PcP.

Technical Analysis: 4DX stock prices are trading above the horizontal trend line support zone at AUD 1.13 on the weekly chart and taking the support of the same. However, prices are trading below 21-period SMA and 50-period which may act as a crucial resistance zone for the stock. The momentum oscillator RSI (14-period) at ~43.31 level. The crucial support level for the stock is placed at AUD 1.12, while the key resistance is at AUD 1.37.

A ‘Watch’ stance is suggested after considering the company’s substantial net losses and expected directionless price movements. The stock was analyzed as per the closing price of AUD 1.250 per share, up by ~5.042%, as of 13^th December 2021.

Weekly Technical Chart – 4DX

Source: REFINITIV

Doctor Care Anywhere Group PLC (ASX: DOC)

A UK-based telehealth service provider, DOC connects patients with corporate customers, health insurers and healthcare providers through its cloud-based technology platform including Virtual GP and Internet Hospital. It holds a market capitalization of AUD 141.78 million as of 13^th December 2021.

Financial & Operational Updates – As per the announcement dated 1^st December 2021, Perennial Value Management Limited (PVM) changed its substantial shareholding from 13.27% to 14.67%. On 24^th November 2021, Leanne Rowe has resigned from the Board of Directors. As per its Quarterly Updates released on 19^th October 2021, revenue grew ~21.6% Q-o-Q to ~£5.8 million in 3QFY21. It reported ~£5.86 million receipts for 3QFY21 and closed its accounts with a cash balance of ~£23.51 million at the end of 30^th September 2021 versus ~£31.47 million at the end of 30^th June 2021. As per the Half Yearly Report, its total loss decreased from ~£18.66 million in 1HFY20 versus ~£8.04 million in 1HFY21.

Technical Analysis: On a weekly chart, DOC's prices are trading with lower lows and lower highs formation, indicating an overall bearish direction for the stock. Currently, it is trading below its 21-period and 50-period SMA, indicating a negative stance. The RSI (14-period) is entered oversold territory and is trading at ~24.037 levels with no upside reversal indications. The next immediate support level for the stock is AUD 0.380, while the resistance is at AUD 0.470.

Considering the company’s net losses and indecisive price levels, investing in this stock at such uncertain levels should be taken with calculated approach, hence a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.425 per share, down by ~1.163%, as of 13^th December 2021.

Weekly Technical Chart – DOC      

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 Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trend. If the prices are trading above the 50-period, then it shows prices are currently trading in a bullish trend, (Vice – Versa).

The Yellow colour line represents the Trendline.

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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