Vmoto Limited (ASX: VMT)

VMT manufactures and sells electric and petrol two-wheelers in Australia and China. It is engaged in developing, manufacturing, marketing, and distributing electric two-wheel vehicles, including electric motorcycles and mopeds.

FY21 Financial Update – VMT registered total revenue of $86.2 million, up by 41% Y-o-Y. Total unit sales stood at 31,275 electric mopeds/motorcycles units, up by 33% over FY20. Total international sales clocked 29,945 units, up by 36%. Firm international orders stood at 12,488 units as of 31^st December 2021, up by a considerable 84% Y-o-Y. In aggregate, 21 international distributorships were established in FY21, totalling 61 distributorships. VMT expanded its partnership with Helbiz to supply 2,000 additional electric mopeds.

 Technical Analysis: VMT stock price broke the rising trendline support and sustained below the trend line levels on the weekly chart. Moreover, the prices are trading below the trend-following indicators 21-period SMA and 50-period SMA, acting as a resistance zone. Further, the momentum oscillator RSI (14-period) trading at ~43.975, indicating negative momentum. A critical support level is placed at AUD 0.340, while the key resistance level is at AUD 0.420.

Considering the company’s current price levels with indecisiveness, investing in this stock at such uncertain levels should be taken with a calculated approach; hence a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.380 per share, up by ~1.333%, as on 28^th February 2022.

Weekly Technical Chart – VMT

Source: REFINITIV

Western Gold Resources Limited (ASX: WGR)

WGR is an Australian gold exploration company. The company operates through its subsidiary Wiluna West Gold which owns the Wiluna West Gold Project. The project is located nearly 35 to 45 kilometres southwest of the Wiluna township.

Financial Update – On 22^nd February 2022, the company provided a shareholding sale facility to its existing shareholders who holds less than ~$500 worth of fully paid ordinary shares in the company. On 17^th February 2022, edxtensive anomaly of ~25-50m width was found at the Top Knot Shear. In December 2021 quarter, WGR completed two drilling programs across the Eagle, Comedy King and Blob prospects. The programs held 132 RC (Reverse Circulation) drill holes for 8,242 metres, finished with high-grade intercepts. The completion of the Sub-Audio Magnetics survey resulted in targeting over 7.7 km of Brilliant and Joyners shear zones. WGR’s partnership with CSIRO’s expertise in analysing soil sample assay data has improved the prospects for future discoveries. As of 31^st December 2021, WGR held a cash balance of ~$4.108 million as compared to ~$5.14 million as of 30^th September 2021.

Technical Analysis: WGR started trading on ASX on 23^rd July 2021. Due to its novice listing, the technical analysis is not valid.

Due to the  lack of technical data, investing in this stock at such current levels should be taken with a calculated approach; hence a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.130 per share, down by ~7.143%, as of 28^th February 2022.

Daily Technical Chart – WGR

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 previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and is 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 the stock prices tend to find resistance when they are rising, and the uptrend may pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. 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 trends. 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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