Weebit Nano Limited

Weebit Nano Limited (ASX: WBT) creates a non-volatile memory employing Resistive RAM (ReRAM) technology based on factory-produced materials. The firm was established in 2015 and has its headquarters in Melbourne, Australia.

Fundamental Update:

Capital Raising:

• On 24 March 2023, WBT updated that it has successfully wrapped up the institutional component of its capital raising program designed to raise up to AUD 55mn. The company has raised AUD 45mn through its fully underwritten institutional placement of 9mn new fully paid ordinary shares. The shares are priced at AUD 5 apiece. The placement saw high participation from new as well as existing investors from Australia and offshore.
• Also, the company plans to raise AUD 10mn through a share purchase plan (non-underwritten) on the same terms as the institutional placement. The share purchase plan will open on 3 April 2023 and close on 19 April 2023.
• The funds raised will be directed towards development and commercialization of the company’s innovative technology, Resistive RAM (ReRAM), which shall aid new electronic products with lower power memory and higher performance solutions. Moreover, the company expects to use the proceeds towards tapping opportunities in the non-volatile memory (NVM) technology market.

Financial Highlight: During H1 FY23 (for the period ended 31 December 2022), WBT generated nil revenue, while net loss for the period worsened due to higher operating expenses.

Technical Analysis:

On the daily chart, WBT's price broke below a near-term upward sloping trendline by the downside, accompanied by a breakaway gap, indicating the possibility of a downward move hereon. The RSI (14-period) is trading near its lowest low since October 2022, with a reading of 32.51. Besides, the prices are trading below the trend-following indicators 21-period and 50-period SMAs, which may act as the resistance levels for the stock. An important support level for the stock is placed at AUD 4.150, while the key resistance level is placed at AUD 5.050.

Daily Technical Chart – WBT

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 trading below an upward sloping trendline, the 50-Period SMA resistance and momentum oscillator analysis, a ‘Watch’ recommendation is given on the stock. The stock was analysed as per the closing price of AUD 4.590 per share as on 27 Mar 2023, down by 7.65%.

Mount Gibson Iron Ltd (ASX: MGX)

Mount Gibson Iron Ltd (ASX: MGX) manufactures and exports iron ore products. The company operates through two segments: Mid-West and Koolan Island, which comprise mining, crushing, transportation, and iron ore sales.

Technical Analysis:

On the daily chart, MGX’s price has formed a symmetrical triangle pattern, indicating that the current trading range is likely to persist in the near future. Moreover, RSI (14-period) is trading near the midpoint and showing a reading of 41.09. The prices are trading below the trend-following indicators 21-period and 50-period SMAs, which may act as the dynamic resistance levels for the stock. An important support level for the stock is placed at AUD 0.465, while the key resistance level is placed at AUD 0.550.

Daily Technical Chart – MGX

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 facing the resistance formed by the 21-Period SMA, consolidation in a symmetrical triangle pattern, and momentum oscillator analysis, a ‘Watch’ recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.500 per share as on 27 Mar 2023, down by 3.85%.

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.

The reference data in this report has been partly sourced from REFINITIV

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 risk, 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.

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