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Company Overview: Cann Group Limited (ASX: CAN) engages in the breeding, cultivation, production, manufacturing, supplying, and selling medicinal cannabis, which licenses to undertake research and to cultivate cannabis for human medicinal and research purposes. Clarity Pharmaceuticals Limited (ASX: CU6) develops theragnostic therapy and imaging products for the treatment of cancer in children and adults, whose lead product includes SARTATE, a targeted theragnostic radiopharmaceutical used for diagnosing, staging, and treating cancers. Wildcat Resources Limited (ASX: WC8) explores for gold, lithium, copper, and nickel deposits, whose projects include the Mt Adrah and the Bolt Cutter Gold covering an area of approximately 950 square kilometres located in New South Wales and Western Australia. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.
Recent Updates:
On 5 June 2024, Medical Cannabis producer, Cann Group Limited announced that it is in the process of appointing Ms Jenni Pilcher for the role of CEO as the previous CEO, Peter Koetsier served the last day of employment on 4 June 2024.
Financially, CAN reported net cash outflows from operating activities of AU$3.851 million in Q3 FY24, and ended the quarter with AU$0.753 million and AU$0.474 million of cash on hand and unused finance facilities, respectively. The Company believes that it can manage cash flow requirements with the current state of funds for at least the next two quarters.
It is noteworthy that CAN reported a 45% YoY jump in revenue in H1 FY24; however, it continued to incur net losses and there were no dividends paid. It also raised AU$5 million through a secure debt facility on 7 May 2024, to continue operations for the next 12 months.
In a nutshell, Cann is conducting internal restructuring, cost saving program, raising funds to meet capital requirements, and revising its sales strategy; however, it is yet to prove itself as a profitable business model.
CAN’s Technical Analysis:
On the daily chart, CAN's stock price is fluctuating between a downward slope channel, indicating a negative bias. In contrast, the trading volume increased substantially in the last two sessions, anticipating for a minor rally. Additionally, the RSI (14-period) is trading deep in its oversold region, providing further support for the mentioned recommendation. Prices are trading below both the 21-period and 50-day SMAs, which may potentially function as dynamic resistance levels for the stock; in contrast, the stock’s lowest low might act as a support. Critical support for the stock is positioned at AUD 0.040, while key resistance is placed at AUD 0.055.
Daily Technical Chart – CAN
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 stock’s current price levels forming a downward slope channel, and momentum oscillator analysis, a “Watch” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.048 per share as on 05 June 2024, down by 4.00%.
CU6’s Technical Analysis:
CU6's stock price is forming an uptrend characterized by higher highs and higher lows, signalling a positive bias. Nonetheless, the stock recently formed a bearish shooting star candlestick followed by a bearish one, anticipating for a minor pullback. Additionally, the RSI (14-period) is correcting from the overbought region, providing further evidence for the previous observation. Prices are trading above both the 21-period and 50-day SMAs, which may potentially function as dynamic support levels for the stock; in contrast, the stock’s most recent high might act as a resistance level. Important support for the stock is positioned at AUD 4.64, while significant resistance is placed at AUD 5.67.
Daily Technical Chart – CU6
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 stock’s current price levels forming bearish candlestick formations during an uptrend, and momentum oscillator analysis, a “Watch” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 5.17 per share as on 05 June 2024, down by 3.90%.
WC8’s Technical Analysis:
While experiencing a downtrend, WC8's stock price is testing a significant support established since January 2024, anticipating a minor rally. Moreover, the RSI (14-period) is trading in its oversold region, providing further support for the mentioned recommendation. Prices are trading below both the 21-period and 50-day SMAs, which may potentially function as dynamic resistance levels for the stock; in contrast, January 2024’s low might act as a support level. Crucial support for the stock is positioned at AUD 0.365, while key resistance is placed at AUD 0.420.
Daily Technical Chart – WC8
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 stock’s current price levels testing its significant support, and momentum oscillator analysis, a “Watch” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.385 per share as on 05 June 2024, down by 4.94%. Wildcat Resources Limited (ASX: WC8) was last covered in a report dated ’13 May 2024’.
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.
The reference date for all price data, currency, technical indicators, support, and resistance levels is June 05, 2024. The reference data in this report has been partly sourced from REFINITIV.
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.
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