Company Overview: WhiteHawk Limited (ASX: WHK) operates as an online cybersecurity exchange platform of end-to-end Cyber Risk Software, focusing on a mid to large company or organization’s 3rd party annual or continuous cyber risk assessment. Ionic Rare Earths Limited (ASX: IXR) is a mineral exploration company which owns Makuutu rare earths project comprising six licenses covering an area of approximately 298 square kilometres in the eastern Uganda. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.

Recent Updates:

On 18 August 2023, WHK announced that the Entitlement Offer (announced on 19 July 2023) of 1 new share for every 6 shares held on the record date got oversubscribed amid strong support from both new and existing shareholders. Through this offer, the company raised ~AUD 1.37mn (before cost) by issuing 42,760,097 shares.

WHK’s Technical Analysis:

Despite experiencing a downward trend marked by declining peaks and troughs, WHK's stock value is currently shaping a descending wedge pattern on the daily chart, signalling a positive bias. This implies a possibility that the stock might enter a phase of sideways movement in the near future. Additionally, the RSI (14-period) is fluctuating near the midpoint, 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 most recent low might act as a support level. Important support for the stock is positioned at AUD 0.030, while key resistance is placed at AUD 0.037.

Daily Technical Chart – WHK

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 oscillating within a falling wedge pattern, and momentum oscillator analysis, a “Watch” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.033 per share as on 28 Aug 2023, down by 2.94%. WhiteHawk Limited (ASX: WHK) was last covered in a report dated ’20 November 2020’.

Recent Updates:

On 1 August 2023, VMM entered into a binding agreement to acquire 100% of the rights to the Rare Earth Element (REE) comprising the Colossus Rare Earth Project, which holds 41 licenses covering 5,616 Hectares (56km2) within South America’s largest known Alkaline Complex in Brazil. The company will pay a total consideration of USD 2.0mn for the Project, as an advanced royalty payment for future production.

The company believes the preliminary drill results represent the underpinning of a tier-one project, with grades expected to increase significantly when tested with deeper drilling. VMM will issue performance rights to the Vendors as part of the consideration. Viridis will raise AUD 2.2mn at AUD 0.25 (a 3.3% premium to 10-day VWAP), to fund exploration and the initial upfront cash payment for the Colossus Project. Ionic Rare Earths Limited (ASX: IXR) will be the cornerstone for AUD 600,000 and will provide the company with more expertise to fast-track the Colossus Project into development.

IXR’s Technical Analysis:

The emergence of a descending wedge pattern on the daily chart suggests a reduction in the downward momentum of IXR's stock prices. Moreover, while situated around the oversold zone, the RSI (14-period) exhibits a bottom divergence in comparison to the price movement, lending further reinforcement to the provided suggestion. 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 pattern’s lower boundary might act as a support level. Important support for the stock is positioned at AUD 0.015, while key resistance is placed at AUD 0.018.

Daily Technical Chart – IXR

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 fluctuating between a descending wedge pattern, and momentum oscillator analysis, a “Watch” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.017 per share as on 28 Aug 2023, down by 5.56%. Ionic Rare Earths Limited (ASX: IXR) was last covered in a report dated ’16 February 23’.

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.

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 28, 2023. 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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