This report is on updated version of the report published on September 14, 2022.

Leo Lithium Limited (ASX: LLL)

Leo Lithium Limited (ASX: LLL) operates as a lithium exploration company with assets located in southern Mali. It serves as a subsidiary of Firefinch Limited. The company is expecting its Goulamine Lithium project to become operational in 2024.

Fundamental Analysis: LLL raised AUD 100.04mn (before costs) through Initial Public Offering (IPO). Post-IPO, Firefinch Limited holds a 17.6% stake in LLL. Following the updated Definitive Feasibility Study (DFS) conducted in December 2021, the Goulamine Lithium project is expected to produce ~726k tonnes of spodumene concentrate per annum basis at an average cost of USD 312/tonne. The mine life is expected to be 21 years and has a high-grade ore reserve of 52Mt at 1.51% of Lithium Oxide.

Technical Analysis: The stock was listed on ASX on June 23, 2022. Due to limited trading history, it is not possible to conduct technical analysis.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Considering the nil revenue generating assets, limited operating history, and absence of technical analysis, it is prudent to recommend a ‘Watch’ stance on the stock. The stock was analysed as per the closing price of AUD 0.675 per share on 13^th September 2022, up ~7.14%.

Daily Technical Chart – LLL

LLL Daily Chart, Data Source: REFINITIV

Senetas Corporation Limited (ASX: SEN)

Senetas Corporation Limited is a global leader in the development of high-performance encryption security solutions.

Technical Analysis: On the Weekly chart, SEN price witnessed a breakout of the falling trendline support and prices are trading below the trendline support level. Moreover, the prices are trading below the trend-following indicators 21- period SMA, which may act as resistance zone. However, the momentum oscillator RSI (14-period) is showing a reading of ~27.60 level. An important support level for the stock is placed at AUD 0.020 while the key resistance level is placed at AUD 0.031.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Considering the company’s current price levels facing resistance at the falling trend line, momentum oscillator analysis, a ‘Watch’ recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.025 per share, as on 13^th September 2022.

Weekly Technical Chart – SEN

American Rare Earths Limited (ASX: ARR)

American Rare Earths Limited (ASX: ARR) is an exploration company that focused on the development of Rare Earth Project in Arizona.

Technical Analysis: On a weekly chart, ARR prices are trading in a sideways trend from past three months. Prices are currently taking resistance of a downward sloping trend line and trading below its 21-period and 50-period SMA on a weekly chart that further support our watch recommendation. Moreover, the momentum oscillator RSI (14-period) is trading at ~46.32, indicating weak momentum for the stock price. An important support level for the stock, is placed at AUD 0.230 while the key resistance level is placed at AUD 0.300.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Considering the company’s current price levels sustaining below a downward sloping trend line, momentum oscillator analysis, it is prudent to suggest a ‘Watch’ stance on this stock. The stock was analysed as per the closing price of AUD 0.265 per share on 13^th September 2022, up ~8.16%.

Weekly Technical Chart – ARR

Althea Group Holdings Ltd. (ASX: AGH)

AGH is engaged in manufacturing, selling, and distributing cannabis-based medicines and recreational cannabis products.

Fundamental Analysis: AGH posted a record increase in customer cash receipts, reaching to AUD 21.95mn in FY22. This is over 113% jump over the last year. Overall revenues hiked ~77.8% to AUD 20.52mn. However, the company continue to report net losses. Its FY22 net loss stood at AUD 12.12mn as compared to net loss of AUD 15.05mn posted in FY21. Its Canadian business showcased 454% surge in revenue in FY22. It had distributed over 20 Stock Keeping Units through Provincial distributors in Canadian market. AGH is expecting to achieve profitability in 3QFY23. The company is expected to hit European markets in 2023.

Technical Analysis: On a weekly chart, AGH prices took resistance of a downward sloping trend line, and the prices are sustaining above the same from past several weeks. Also, the prices are sustaining below its 21-period SMA that further support the watch recommendation. Moreover, the momentum oscillator RSI (14-period) is trading at ~36.780, indicating weak momentum for the stock. An important support level for the stock, is placed at AUD 0.077 while the key resistance level is placed at AUD 0.095.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Considering the company’s current price levels broke a downward sloping trend line, momentum oscillator analysis, and consecutive losses, a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 0.085 per share on 13^th September 2022, up by 1.19% from the prior closing.

Weekly Technical Chart – AGH

Note 1: Past performance is not a reliable indicator 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. 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 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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