Wisr Ltd. 

Wisr Limited (ASX: WZR), formerly known as DirectMoney Limited is a financial services company engaged in providing personal loans through its online lending platform to Australian consumers. It is engaged in writing unsecured personal loans for 3 to 5 years maturities.

As per our previous recommendation on WZR as on February 22, 2021, we recommended a ‘Buy’ rating on the stock from the technical analysis standpoint. However, considering the recent price action, technical indicators analysis, and low double digit returns on the stock we are of the view that it is prudent to book profits at the current level as some correction may be witnessed given the recent scenario. Hence, we give a 'Sell' rating on the stock at the AUD 0.225 (as on March 19, 2021, as per today’s market close). The summary of our 'Sell' rating and price movement since the previous recommendation for WZR is provided as below:

Price action and technical indicator analysis (on the weekly chart):

WZR’s prices moved up ~17.19 percent from the recommended entry-level of AUD 0.225 and made a high of AUD 0.23 on March 19, 2021. Prices are getting resistance from the downward trendline. Prices are witnessing heavy volatility and If prices break 21-period SMA of AUD 0.201 then further downside may be witnessed.

Conclusion:

Based on the above-mentioned price action, downward trendline resistance, and volume analysis, we recommend a ‘Sell’ rating on WZR and suggest investors to book profit at the current price of AUD 0.225 (as on March 19, 2021, as per today’s close).

Investment Related Risks: Based on the technical analysis, the risks are defined as per risk-reward ratio (~0.60:1.00), however, returns are generated within 2-4 weeks’ time frame. This may be looked at by Investors with sufficient risk appetite looking for returns within short investment duration. Investment recommendations provided in this report are solely based on technical parameters, and 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, and social and political instability risks etc.

Entry Price: For the given recommendation(s), Entry Price is assumed be at or above a certain level. However, a slight deviation on either side in the ‘Entry Price’ can be considered depending upon the potential expected or indicated.

Note: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50- period moving average. SMA helps to identify existing price trend. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black 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.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume and we consider stocks with greater than or equal to 500,000 volumes as more liquid. Liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

The reference date for all price data, volumes, technical indicators, support, and resistance levels is March 19, 2021, as per today’s close. 

Note: Trading decisions require a thorough analysis by investors. Technical reports in general chart out metrics that may be assessed by investors before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Our publications are NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion.  Past performance is neither an indicator nor a guarantee of future performance.

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