4DMedical Limited (ASX: 4DX)

4DMedical Limited is an Australian medical technology firm specialising in delivering respiratory diagnostics for all lung problems, including coronavirus, asthma, chronic obstructive pulmonary disease (COPD), cystic fibrosis, and cancer. The current market capitalization as of 13 April 2023 stood at AUD 219.39 million.

Technical Analysis: On the daily chart, 4DX prices are sustaining above the falling trendline support zone and taking support from the same. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~77.24 level. Further, the prices are trading above the trend-following indicator 21- period SMA, which may act as support zone. An important support level for the stock is placed at AUD 0.660 while the key resistance level is placed at AUD 0.880.

Considering the Company's current price levels trading above the trendline, and momentum oscillator analysis, it is prudent to invest in this stock at the closing price; hence a ‘Speculative Buy’ stance is suggested. The stock was analyzed at the closing price of AUD 0.765 per share on 13 April 2023.

Daily Technical Chart –4DX

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report.

Note 3: Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

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

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, prices are currently 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, prices are currently in a bullish trend (Vice – Versa).

The Orange/ 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.