Updated

ASX:RAP - Fundamentally strong, technically neutral

ASX:RAP is an interesting combination of strong fundamentals and filthy price action. Purely technical traders may be deterred, however under the hood we're presented with some interesting insights that might be overlooked by those without intimate knowledge of the company.

Technicals - Neutral

Reasons to take a trade:

Location: Using the most recent swing point, we're at the 0.786.
Structure: Double bottom formed.
Divergence: Unconfirmed histogram bullish div, healthy OBV.
Flip of previous resistance zone into support.
Trading above the 200MA.

Areas of concern:

Gaps gaps gaps! As a trader, I get nervous when I'm buying above so many unfilled gaps.
The VPVR POC is resting down at 0.090, with thin volume below current PA.

Fundamentals - Bullish

FDA approval is looking to come through likely this month (Feb 2020) otherwise next, its above average length of approval, however no further questions have come back from FDA since mid/late last year and Feb is historically when FDA starts approving again after the holiday break.
Healthy books and cash balance to see company through to end of CY20 and likely revenue generation.
Sanofi startup accelerator is coming to close this week with final presentations, noting Sanofi has option to exercise its rights to ResApp products until March.
Coviou App integration negotiations will be complete by end of March (End of Nov accouned with 4 month timeline)
COPD Trial to commence after ethical approval.
Continued work on Lockheed Martin in background.

Hit the LIKE button if you find my analysis valuable and want to support me. Follow to make sure you don't miss any future trade ideas.

Note

Outlook is now bullish after a strong week. Was unable to get a limit fill today. Whether or not I get in the trade, I expect RAP to make a run at the red box.

- Healthy double bottom in price
- W in OBV and Willy
- Histogram > 0

Trade active

Note

Turbulent week for RAP.

Announcement of a strong fundamental driver coupled with a capital raise during a trading halt. With the former bullish and the latter *typically* bearish, the market *DID NOT* create any price gaps and only closed -2% for the day. Strong indecision, let's continue to monitor.

Trade closed: stop reached

Capital raise + strong fear in the market caused RAP to break market structure and now, for consecutive days, trade under it's 1D 200MA. With all the unfilled gaps resting below, the trade has been closed.

AndyTheKing

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

AndyTheKing

Also on: