Company Overview: Helloworld Travel Limited (ASX: HLO) operates as a travel distribution company in Australia, New Zealand, and internationally, which provides international and domestic travel products and services, as well as operates a franchised network of travel agents. Tribune Resources Limited (ASX: TBR) engages in the development, exploration, and production of mineral properties in Australia, which holds interests in mining projects in in Western Australia and West Africa. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.

Recent Updates:

Helloworld Travel Ltd (ASX: HLO) operates as a travel distribution entity, and it released September ended quarter update on 23 October 2023.

• During Q1 FY24, underlying EBITDA was AU$16.8 million against AU$5.5 million in Q1 FY23.
• Total transaction value also jumped 120% YoY in Q1 FY24, which subsequently increased total revenue by 67% YoY for the first quarter.
• However, combining Helloworld with Express Travel Group business hit the overall revenue margins.

Outlook:

• The domestic and international travel demand has returned, and a positive trend is evident in higher average per person spend.
• The Australian and New Zealand waters also observed increased cruise operations.
• The Company also maintained liquidity with zero external borrowings and funded recent acquisitions from internal resources. The business was also able to invest in its own key technology.
• In terms of guidance, FY24 underlying EBITDA is expected to be in the range of AU$64 to AU$72 million, provided there are no adverse changes in the operating conditions. 

HLO’s Technical Analysis:

On the daily chart, while experiencing a short-term correction, HLO's stock price appeared a runaway gap on 25 October 2023, signalling a negative bias. Nonetheless, since then, the stock has been rebounding and, most recently, closing the previously mentioned gap, indicating that the minor rally might be strengthening. Additionally, the RSI (14-period) is rebounding from the oversold region, providing further support for the mentioned recommendation. Prices are trading below the 21-period SMA, which may potentially function as a dynamic resistance level for the stock; in contrast, the stock’s most recent low might act as a resistance level. Important support for the stock is positioned at AUD 2.17, while key resistance is placed at AUD 2.57.

Daily Technical Chart – HLO

Considering the stock’s current price levels closing a runaway gap, and momentum oscillator analysis, a “Speculative Buy” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 2.35 per share as on 31 October 2023, up by 3.98%. Helloworld Travel Limited (ASX: HLO) was last covered in a report dated ’24 July 2023’. 

Recent Updates:

Quarterly Highlights: Tribune Resources Limited (ASX: TBR) is involved in the exploration, development, and production activities at its East Kundana Joint Venture (EKJV) tenements. During the quarter ended September 2023, Rand and Tribune processed 78,645 tonnes of ore at 3.95 g/t from the EKJV operations. In addition, 9,408 ounces of gold production were witnessed during the quarter.

• TBR closed the quarter with cash and cash equivalents of AUD 6.262mn, compared to AUD 7.095mn as at 30 June 2023.
• For the quarter, staff, administration, and corporate costs stood at AUD 1.358mn. This resulted in a net cash outflow from operating activities of AUD 617k for the September quarter compared to the net cash inflow of AUD 1.465mn for the June quarter.

Outlook: A program of about 8,000 meters for reverse circulation drilling and infill diamond core has been proposed. The company is on schedule to complete the planned activities for the upcoming fiscal year, which include baseline studies on the social and environmental aspects of the business, as well as preparatory and ongoing work on access tracks and roads for scheduled drilling operations. 

TBR’s Technical Analysis:

On the daily chart, TBR's stock price is establishing a symmetrical triangle pattern characterized by lower highs and higher lows after a downtrend, indicating a weakening downside momentum. Moreover, if prices can manage to break above the pattern’s upper boundary, it might gain more momentum to head higher. Prices are fluctuating between its previous peak and trough, which may potentially function as resistance and support levels for the stock. Significant support for the stock is positioned at AUD 2.95, while critical resistance is placed at AUD 3.49.

Daily Technical Chart – TBR

Considering the stock’s current price levels forming a descending triangle pattern, and momentum oscillator analysis, a “Speculative Buy” recommendation is given on the stock. The stock was analysed as per the closing price of AUD 3.18 per share as on 31 October 2023, down by 0.63%. Tribune Resources Limited (ASX: TBR) was last covered in a report dated ’15 December 2022’.

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 October 31, 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.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services. Please note past performance is neither an indicator nor a guarantee of future performance.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this report or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website including entities covered in this Report.