Meteoric Resources NL (ASX: MEI)

MEI was incorporated in 2004 and is based in West Perth, Australia. The company is engaged in the exploration of minerals primarily Cobalt, Diamond, Gold and Silver deposits. The projects are spread across Brazil, Canada, Western Australia, and Northern Territory. The market capital of the company stands at $69.22 million at a share price of $0.052. 

Fundamental Highlights- Recently the company announced updates related to its various projects on account of drilling and finding of minerals across Brazil out of which a big quantity of High-Grade Epithermal Gold deposits was indicated 286,000t @ 17.0 g/t Au for 156,000 ounces AU and a similar big chunk of Gold-Copper deposits were inferred. The company failed to attract any cash receipts from the customers for the three straight quarters ending on 31^st March 2021, resulting in the net cash outflow from operations to $1.29 million for the 3Q FY21. The cash and cash equivalent balance declined to $5.23 million on 31st March 2021 as compared to the $6.4 million on 31st December 2020.

Technical Analysis- The stock is currently in the downtrend forming lower highs and lower lows since the start of the current year. The prices are currently hovering near the crucial support zone of $0.045 - $0.042, which should be respected in due course for the stock to resume any uptrend in the near term. The relative strength index is placed at 46.53 which is in the middle range of the zone, lacking a strong conviction towards any trend formation. The 21 Days Simple Moving Average is also keeping in tandem with the closing stock prices at $0.052, thereby dictating any trend confirmation in tear term. For the stock to resume any uptrend, the crucial resistance of $0.062 should be taken off the charts.

With the lack of operating income, volatile commodity prices, long and complex exploration process involving various uncertainties, and plummeting stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $0.052 as of 14^th July 2021.

Daily Technical Chart – MEI

Source: REFINITIV

Weebit Nano Limited - (ASX: WBT)

WBT was incorporated in 2015 and based in Melbourne, Australia. the company is engaged in the development of non-volatile memory using Resistive RAM (ReRAM) technology based on silicon oxide. The current market capitalization of the company stands at $219.64 million at $2.070 a share.

Fundamental Highlights- The company announced its ongoing discussions with various potential product partners and customers, to commercialise its first agreement by mid-2021 which is subject to the Covid 19 travel restrictions. There is an inflow of $2.03 million from the French Research & Development incentive programme. Further, on a positive note, the company was included in the S&P / ASX All Ordinaries Index which will make the stock widely tracked among the investors. The company failed to attract any cash receipts from the customers for the 3 straight quarters ending on 31^st March 2021, resulting in the net cash outflow from operations to $0.98 million for the 3Q FY21. The cash and cash equivalent balance in the books was $19.96 million as of 31^st March 2021.

Technical Analysis- The stock showed a spectacular rise from December 2020 and printed the recent high of $4.27 and post that it witnessed sharp correction and moving in a downward trajectory since then. The stock recently touched crucial support of $1.545 and bounced from there. The Relative strength index is currently showing 63.26 which is heading towards the upper range of the zone, pointing at some more strength in the current uptrend. The 21 Days Simple Moving Average is placed below the closing of the stock price at $1.74, which is indicating an upside in the stock further from there. The stock is poised to face the strong resistance of $2.375 which can bring selling pressure at these levels.

With the lack of operating revenues, dependency on the Research & Development grants, accumulating losses, and current overall downtrend in stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $2.070, up by 15.64% as of 14^th July 2021.

Daily Technical Chart - WBT

Source: REFINITIV

Venture Minerals Limited (ASX: VMS)

VMS was incorporated in 2006 and based in West Perth, Australia. the company is engaged in mineral exploration across Australia, covering Nickel, Cobalt, base metals, Lithium, copper, Gold and Silver. Its biggies project is spread covering an area of 148 square kilometres in North West Tasmania. The current market capitalisation of the company stands at $152.85 million at a $0.12 price a share. 

Fundamental Highlights- Recently the company announced the commissioning of the Wet Screening at its Riley Iron Ore Mine, and as per the company, its first iron ore shipment is still on track for the current quarter. The company did not receive and cash receipts from the customers for the three straight quarters ending on 31^st March 2021, resulting in the net cash outflow from operations to $1.68 million for the 3Q FY21. The cash and cash equivalent balance increased to $10.71 million on 31^st March 2021 as compared to the $3.66 million on 31^st December 2020.

Technical Analysis- The stock came out from a narrow range in the middle of 2020 and gave a breakout from the $0.32 level and recorded the recent high of $4.27, and witnessed the sharp correction from there and continuing in the downtrend till now. The Relative Strength Index is 45.12 which is in the middle of the range and lacking the trend confirmation from here. The 21 Days Simple Movin Average is $0.133 which is placed above the closing of the stock at current levels, indicating a further downtrend from the current levels in the near term. The support is placed at  $0.093 and the resistance is at $0.16 levels.

With the lack of operating income, volatile commodity prices, accumulating losses, and plummeting stock prices, we suggest investors to ‘Avoid’ the stock at the closing price of $0.120, up by ~4.35% as of 14^th July 2021.

Daily Technical Chart – VMS

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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