2 ASX Stocks under Investors’ Radar - NXL, RSH

Nuix Limited (ASX: NXL)

NXL provides an analytics and data software suite of products. Its products include Nuix Discover, Nuix Investigate, Nuix Workstation, Nuix Adaptive Security, and Nuix Enterprise Collection Center. NXL holds a market capitalization of $488.66 million as of March 28, 2022.

Financial and Operational Updates: As announced on March 10, 2022, NXL is defending the two-class action lawsuits filed against it. The first case is filed by ASIC which is investigating NXL’s prospectus. The second case is by Banton Group on the forecasted revenues for FY21. In H1FY22, NXL posted statutory revenue of $84.0 million, down by 1.5% YoY, and recorded a net loss of $2.3 million as compared to net profit of $9.5 million posted in the prior year.

Technical Analysis: On the daily chart, NXL prices are trading below the horizontal trend line resistance level and facing the resistance of the trendline. Moreover, the momentum oscillator RSI (14-period) trading at ~55.29 level, showing negative sign. However, the prices are trading above the trend-following indicator 21-period and 50-period SMA, which may act as a support level. An important support level for the stock, is placed at AUD 1.36 while the key resistance level is placed at AUD 1.59.

Considering the lawsuits, the decline in revenue and profitability in H1FY22, and current trading levels, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 1.485 per share, as of 28^th March 2022, down ~3.572%.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

NXL Daily Technical Chart, Data Source: REFINITIV 

Respiri Limited (ASX: RSH)

RSH provides medical devices and mobile health applications to customers in Australia and Israel. Its wheezo is an eHealth Saas platform that assists asthma monitoring. RSH holds a market capitalization of $41.20 million as of March 28, 2022.  

Financial and Operational Updates: As announced on March 15, 2022, RSH partnered with Access Telehealth in providing Remote Asthma Monitoring for a selected group of children living with Asthma under the Medicaid program in the US arket. In H1FY22, RSH posted a 46% drop in revenue to $659.15k and reported a loss of $3.05 million (vs. $6.39 million in H1FY21). Its cash balance declined from $7.97 million as of June 30, 2021, to $5.12 million as of December 31, 2021.  

Technical Analysis: On the daily chart, RSH prices are trading below the downward sloping trend line resistance level and facing the resistance of the same. Moreover, the momentum oscillator RSI (14-period) trading at ~59.12 level. However, the prices are trading above the trend-following indicator 21-period and 50-period SMA, which may act as a support zone. An important support level for the stock, is placed at AUD 0.050 while the key resistance level is placed at AUD 0.064.

Considering the nascent stage of operations, a significant decline in H1FY22 revenue and continued losses, and current trading levels, a ‘Watch’ stance is suggested. The stock was analyzed as per the closing price of AUD 0.057 per share, as of 28^th March 2022.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

RSH Daily Technical Chart, Data 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 analysis has been achieved and is subject to the factors discussed above alongside support levels provided.

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.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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