Company Overview: Telix Pharmaceuticals Limited (ASX: TLX) is a radiopharmaceutical company focusing on the development of diagnostic and therapeutic radiopharmaceutical products which use Molecularly Targeted Radiation to treat cancer. Southern Cross Electrical Engineering Limited (ASX: SXE) is an electrical and communication service provider that principally engages in offering electrical, instrumentation, communication, and maintenance services. This Report covers the Price Action, Technical Indicators Analysis along with the Support Levels, Resistance Levels, and Recommendations on these stocks.

Telix Pharmaceuticals Limited

Fundamental Update:

21 June 2023: The company announced that it had inked a deal to acquire Lightpoint Medical and its SENSEI® radio-guided surgery business for a purchase consideration of USD 20mn upfront and a further USD 15mn earn-out in order to expand into other urologic and non-urologic malignancies. The acquisition of Lightpoint will add to Telix’s artificial intelligence (AI) program, as the former has innovative capabilities in AI for surgical guidance.

Business Highlights for Q1FY23 (for the period ended 31 March 2023): Total revenue for the quarter reached AUD 100.1mn, up 27% quarter over quarter, driven by global sales of Illuccix®, Telix’s prostate cancer imaging agent. Cash flow from operations was positive and stood at AUD 2.4mn during the quarter, depicting an improvement of AUD 0.8mn from the prior quarter. Cash receipts from customers increased by 15% over the prior quarter to AUD 83.2mn. As of 31 March 2023, the cash balance stood at AUD 121.4mn, up from AUD 116.3mn reported on 31 December 2022. The company is set to report its quarterly report for the period ended 30 June 2023 on 19 July 2023 at market close.

Valuation Methodology: Price/Earnings Approach (FY24E) (Illustrative)

Technical Analysis:

TLX's price is showing an upward trend characterized by consistently higher highs and higher lows. Despite a minor correction at present, TLX is backed by a short-term support trendline that has been established since February 28, 2023, indicating that the stock's upward trend remains stable. Additionally, both prices and the 21-period SMA are trading above the 50-period SMA, which supports a positive bias. The RSI (14-period) is also moving above the midpoint with a reading of 52.43. Important support for the stock is located at AUD 10.25, while key resistance is situated at AUD 12.35.

Daily Technical Chart – TLX

Considering the stock’s current upside valuation, upward trend characterized by higher highs and higher lows, and technical indicators analysis, a ‘Buy’ recommendation is given on the stock. The stock was analysed as per the closing price of AUD 11.25 per share as on 13 Jul 2023, up by 1.17%. Telix Pharmaceuticals Limited (ASX: TLX) was last covered in a report dated ‘21 April 2023’.

Southern Cross Electrical Engineering Limited

Technical Analysis:

SXE is currently displaying a symmetrical triangle pattern on the daily chart, suggesting that the stock's trading range is expected to continue in the near future. Furthermore, RSI (14-period) is trading close to the midpoint, further supporting this observation. The stock prices are below the 50-period SMA, indicating that it may act as a resistance level; in contrast, the lower boundary of the symmetrical triangle pattern is likely to provide dynamic support. Important support for the stock is positioned at AUD 0.565, while key resistance is placed at AUD 0.705.

Daily Technical Chart – SXE

Considering the stock’s current price levels trading in a sideway trend characterized by a symmetrical triangle pattern, and technical indicators analysis, a 'Watch' recommendation is given on the stock. The stock was analysed as per the closing price of AUD 0.635 per share as on 13 Jul 2023, up by 0.79%. Southern Cross Electrical Engineering Limited (ASX: SXE) was last covered in a report dated ‘20 November 2020'.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest, taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

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 July 13, 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

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