dorsaVi Limited (ASX: DVL)

DVL is a software company focusing on development of innovative motion analysis device technologies in clinical applications, elite sports, and occupational health and safety. Its market capitalization stood at AUD 7.02 million as of 2^nd November 2021.

Operational and Financial Updates:  On 27^th October 2021 as per the Quarterly Cashflow Updates, DVL reported an increase in receipts from customers from ~AUD 457k in June 2021 Quarter to ~AUD 1.03 million in September 2021 Quarter and reported ~AUD 2.6 million (including R&D tax rebate of AUD 418k) as net cash as of 30^th September 2021. The total revenue increased by ~54% Y-o-Y to ~AUD 585k in 1QFY22 versus Pcp. On 4^th October 2021, DVL appointed Mr. Troy Di Domenico as CFO. As per the recent Annual Report, the company’s Net Losses stood at ~AUD 2.028 million in FY21.

Technical Analysis: DVL stock prices are trading below the horizontal trend line resistance zone at AUD 0.0255 and continuously facing resistance of the same on the daily chart. Moreover, the momentum oscillator RSI (14-period) is trading in an overbought zone at (~81.08 level), which indicates the possibility of downside correction in the stock from the current levels However, prices are trading above 21-period SMA and 50-period which may act as a crucial support level for the stock.

The stock has given ~20.00% return in the past one month while it gave a negative return of ~7.69% in the past three months. After considering its RSI trading in overbought zone, we consider it is prudent to liquidate the stock. Hence, we recommend “Sell” stance at the current price of AUD 0.025 per share, as on 03:19 PM (GMT+10), Sydney, Eastern Australia, as of 2^nd November 2021.  

Daily Technical Chart – DVL

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 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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