Good evening Calm people of Hotcopper!
CCO Analyst Buy Upgrade Target Price 2.6c - 3c
Market Cap: $17.95M
Shares On Issue: 1.51B
Shares On Float: 700M (give or take)Hopefully my analysis of this stock won't cause too many stress for fellow holders
I am a short term trader but pick stocks with short to medium upside targets when I suspect they are in play, have potential for further upside and or momentum starts to favour a company/sector.
Fundamental Case Below:Today we have CCO putting in a
+155% maximum move from today's opening price, off the back of an Investor Presentation after just announcing a Raise of $2M AUD. This seemingly has served to be the catalyst and it makes sense because the presentation reads well. The numbers in the announcement look quite good! Particularly the slide of the large Contracts won with the likes of
Amazon, Walmart & Shopify driving sales further to improve the fundamental cash position.
From a technical traders' perspective, we generally should have some basic FA that attracts us. For me, this is the low shares on issue relative to the float (what's available to trade for all market participants). Along with their recent funding means I didn't need to risk holding into a Trading Halt for financing. Recent Placement is offering the ability to convert Options exercisable at
3c. Ironically, that is the maximum end of my short-to-medium profit targets and I suspect the Lead Broker would like to be issued these to take free money.
Placement will issue 504,962,470 shares at 0.004c on 18th June which gives me the impression this stock may hold the gains, going for a second push and as it gets close to commencement of these shares, a News announcement will be dropped for Capital Raise participants to take exorbitant profits into what I suspect will be many people chasing the price by that stage.
To further add to this I would like to incorporate Technical Analysis to identify potential profit target levels/zones to start de-risking a position.
I tried hard before taking any position to have a look into the things I have mentioned through this post, and finally made my plan to take a small position in this stock ideally looking to add more to my holdings on a DipBuy, so long as the price doesn't get too far ahead of me otherwise I will just have to hold.
The charts below are from 2.39pm today particularly the 5min, 15min and 30min charts.
5mins
15mins
30mins
I then sketched the latest 5min chart once the markets closed and this pennant formation is apparent regardless the time frame one chooses to look at!
NOTE:
I have added my own artistic impression TO DEPICT what a potential morning spike could look like just as it happened this morning. It may happen tomorrow. I doubt it BUT if does, that most likely means I won't be able to get my #DipBuy and cannot add more to my position as it will feel like chasing price!
Closing prices had buyers willing to still bid at 1.3c which tells me the larger orders being filled at 1.2c/1.3c from 2pm onwards appears rather
accumulative despite the price rise. Due to the low float, traders rotated from 1 buyer to the next and since folks were willing to hold we saw higher prices still. With 71M shares exchanging hands, this is 10% of the entire available float done in 1 day. Even if just 5% of those holders choose to hold, we may see a good uplift in prices from current levels.
Lastly, I have attached a DAILY CHART one dating back to 2020 with the next being 2024. It's important for me and I think all investors and traders to study history by looking at THE PAST! Human nature never changes and that's why patterns are formed which can be capitalised on.
We can see back in 2020, when prices formed a base around the 200 EMA, prices gapped up (just like today), dipped for 1 day before retesting that high and shooting to new levels, followed by it's biggest gap up and spike!!
Total move from 200 EMA Base to the maximum move it put out was +300%!!
Fast forward to 2024, we see prices now trending up
We see a lovely base at the 200 EMA once again just like 4 years ago!
THEN prices GAPPED UP would you look at that?
Tomorrow it MAY have a dip and reclaim. Tomorrow it may hardly dip and just keep running
All we know is the people who made the moves 4 years ago appear to be back playing their usual games.
Patterns and recognising them is WHERE I make my money!A 300% move from the 200 EMA base puts price targets of 2.6c!
This former support level is the most immediate proper resistance to test hence my Target Prices 2.6c to 3c 
Lastly it wouldn't be a charting thread without a
Weekly Chart where we can identify 2 sticking thumbs as lessons here.
1: A former SUPERNOVA runner with huge gains
2: The ability run multi-week, back to back!
Thirdly and just as importantly is the
historical all time high volume it has done off a multi week/month base it has put out. With fundamentals improving, these are the perfect set-ups I like to go for, and that's why my short/medium term targets constantly get smashed! I go for stocks that MOOOOOOOOOON !!
Good luck to all holders, I won't have the ability to hold anywhere upto 2.6c leaving plenty for all market participants to also extract capital out of these vehicles let's see how "HIGH" we can all get in this
CALM
COMPANY
AND PLEASE if you have enjoyed this content, please help me in accomplishing my goal to be the Only Transparent Red Heart on Hotcopper
Hit The Follow and it will help Hotcopper recognise me thanks to everyone's assistance towards this cause!
SENTIMENT: (DIP) BUY (more) if I can!
POSITION: HELD
(20min delay)