Aeris Resources Limited (ASX: AIS)

AIS was incorporated in 2010 and based in Brisbane, Australia. The company is engaged in mining and exploration of copper and gold operations. A few of the key projects are Tritton Copper operations, Torrens, Canbelego and Cracow Gold project.

Fundamental Highlights- The company repaid the debt of $48 million from the starting of 1^st July 2020 to de-leverage its books. Further, the company made good progress on its diamond drilling and geophysics, resulting in extended copper sulphide mineralisation across all its five diamond drill holes. For the 31^st March 2021, the cash and receivables were $55.8 million along with the positive Net Debt of $0.20 million. In H1 FY21 update, the revenues increased by 99% of $214 million as compared to $108 million in 1H FY20. The company successfully recorded profits of ~$46 million for the six months period ending 31^st Dec 2020 against the loss of ~$29 million in the previous comparable period.

Technical Analysis- The stock witnessed a strong uptrend since September 2020 and reached the recent high of $0.23, correcting slightly from there. The Relative Strength Index is currently at 47.20, which is in the middle of the range, lacking clarity on the strong one side trend formation as of now. The 21-Day Moving Average is closing above the stock at $0.197, indicating a downtrend for the near term. The support is currently placed at $0.16, which needs to be sustained for any recovery in the stock prices. The stock is currently bounded by the strong resistance of $0.23 which can be taken off the charts when accompanied by strong volumes.   

With the volatile commodity prices, the long extraction process, environmental hazards, changing regulations, and higher stock prices, we suggest investors to ‘Avoid’ the stock at closing price of $0.180, down by 2.703% as of 9^th July 2021.

Daily Technical Chart - AIS

Source: REFINITIV

LIFE360 Inc.- (ASX: 360)

360 was incorporated in 2007 and based in San Francisco, California. The company is engaged in the development of the mobile application, helpful for families that provide communication, driving safety and location sharing.

Fundamental Highlights- The company recently announced a non-binding agreement to acquire, Jiobit, a wearable location device for children, seniors, and pets in consideration of US $37 million to US $54.5 million depending upon the terms and conditions. For the 31^st March 2021, the Annualised Monthly Revenue (AMR) was US $95.8 million with a 26% increase year on year. The paid User Acquisition spending was US $1.2 million for the quarter ending 31^st March 2021 as compared to the 31^st December 2020 of US $1.7 million. The company managed to stand with a similar cash balance of US $53.53 million as of 31^st March 2021 as compared to the previous quarter and reported the EBITDA loss of US $1.5 million.

Technical Analysis- The stock witnessed a substantial up-move forming higher highs and higher lows and printed the lifetime high of A$7.11. The Relative strength index is pointing at 68.65 which is at the upper end of the range and indicating the continuation of the up move in prices. The 21-Day Moving Average is $6.50, also supporting the uptrend in prices. The support is placed at A$6.12 and then A$5.02 which can be touched in the event of any profit booking from the highs. The prices are at a lifetime hence, the resistance is not viable on the charts.

The company is still in losses and making acquisitions, and with the prices hovering at a lifetime high, we suggest investors to ‘Avoid’ the stock at the closing price of $7.030, up by 0.285% as of 9^th July 2021.

Daily Technical Chart - 360

Source: REFINITIV

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

Note 2: Investment decision should be made depending on the investors’ appetite on 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 uptrend may take a pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. DMA 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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