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Five microcap stocks to watch

By Dale Gillham

December 7, 2023

Emvision Medical Devices Ltd (ASX:EMV)

EMvision Medical Devices Limited specialise in medical imaging technology, focusing on developing a portable medical imaging device.

As strokes are estimated to account for 34% of all healthcare expenditure globally, this neuroimaging device will be used to improve the diagnosis and treatment of stroke and other medical conditions. Given this, EMvision is well-placed to solve a current real-world problem.

It's not often you come across one of those businesses where you say, wow, I really hope they achieve their objective as it will improve the lives of millions of people.

It's also not often you see a company float on the ASX and trade 1369% higher in less than a year! This is exactly what EMV did as it reached $4.20 in November 2020. Price has since been slowly trending down and seems to have found support around $1.10.

If we draw a simple but powerful technical analysis tool like a trendline down from the and do so on the monthly chart, we can see that the price has now traded above the trendline, which is a good sign.

However, we still need to exercise caution as I am interested in a pattern unfolding on the weekly chart that suggests short-term weakness.

Price has found support, at least for now; if this significant level at $1.40 is broken, I'd be putting my feet up and waiting for another opportunity.

On the other hand, if the price respects this level, starts to trade up with conviction, and moves above $1.88, it will justify a nice entry. This is one to watch closely.

https://www.moneymag.com.au/five-microcap-stocks-to-watch