Competition Analysis | Who stayed on the leaderboard of the ASX stocks Papertading Competition last week?

Moomoo AU wrote a column · Sep 18 05:02

Hello, mooers!!

Congrats to these Top 10 mooers who gained most in the ASX stocks Papertrading Competition last week:

@JMack89 @满山猴我腚最红 @151431895 @152319742 @上海白砂糖 @BigBizyBee @151377929 @aaaaaaaroni @151614905 @BigBosher1

Competition Analysis | Who stayed on the leaderboard of the ASX stocks Papertading Competition last week?

Last week, we noticed that the top three investors in the Australian Stock Trading Competition made significant profits trading $Zip Co Ltd (ZIP.AU)$ , $Appen Ltd (APX.AU)$ , $Deep Yellow Ltd (DYL.AU)$ and $Bannerman Energy Ltd (BMN.AU)$ stocks.

Let's delve into how they identified these trading opportunities.

Zip Co Ltd: Rebounded from heavy sell-off but approached resistance level

$Zip Co Ltd (ZIP.AU)$ is a diversified financial services provider, primarily offering buy-now-pay-later (BNPL) solutions in the United States, Australia, and New Zealand. The company provides consumer financing through credit lines (Zip Pay and Zip Money) and installment financing (QuadPay, Spotii, Twisto, and PayFlex). Additionally, it offers loans to small and medium-sized enterprises (Zip Business). Approximately 60%-70% of its revenue is derived from account fees and interest.

On August 27, Zip released its FY24 financial report, showing a revenue increase of 28% to $868 million and a gross profit surge of 53% to $373 million. However, despite these strong figures, the stock plummeted 7.93% to $2.09 on the day of the announcement. This decline can likely be attributed to market expectations of even stronger performance, which the company failed to meet.

One of the three traders bought ZIP at the bottom on September 6th and gained profits from the oversold rebound. Subsequently, the stock rebounded from a heavy sell-off, with its price recovering amidst volatility.

Currently, Zip's Relative Strength Index (RSI) indicates overbought conditions. The support level for Zip's stock is AUD 1.80, while the resistance level is AUD 2.420. With the current stock price at AUD 2.415, it is nearing the resistance level, potentially facing selling pressure.

Appen Ltd: Major shareholder change drove stock up

On September 12, 2024, $Appen Ltd (APX.AU)$ announced that First Sentier Investors Holdings Pty Limited and its ultimate parent company, Mitsubishi UFJ Financial Group, have become significant shareholders of the company. As of September 10, 2024, they collectively hold voting rights for 11,176,893 shares.

This substantial change in Appen Ltd.'s shareholder structure has been met with a positive market response. On the day of the announcement, September 12, the stock price surged by 16.73% to AUD 1.5, and continued to rise by 3.33% to AUD 1.55 on September 13.

Currently, the support level for the stock price is AUD 1.260, while the resistance level is AUD 1.780. The Bollinger Bands line breaks upward through the middle rail, indicating a positive trend outlook. But the current stock price is in a risk zone, with a large amount of chips making profits, so caution is needed to avoid chasing highs recklessly.

Deep Yellow Ltd: Putin's hinted export restrictions boosted stock price

$Deep Yellow Ltd (DYL.AU)$ is a uranium exploration and development company. Its flagship projects include the Tumas project in Namibia and the Mulga Rock project in Western Australia. Both projects are located in Tier-1 uranium jurisdictions, with a combined production capacity of over 7 million pounds per year. The company's strategic goal is to continuously increase annual output and become one of the world's leading low-cost uranium producers.

According to a Reuters report, on September 11, Russian President Vladimir Putin hinted at restricting the export of certain commodities in retaliation against U.S. sanctions. He stated, "Russia holds a leading position in reserves of strategic raw materials such as uranium, titanium, and nickel... perhaps we should also consider export restrictions." Following this announcement, Australian uranium producer stocks surged on September 12, and Deep Yellow Ltd benefited from this rally.

After the surge on September 12, DYL's stock price has somewhat retreated. The current stock price is AUD 1.15, with a support level at AUD 1.02 and a resistance level at AUD 1.52. The current situation is in a wait-and-see area, with high uncertainty in the future market. Investors need to pay attention to changes in the trend.

In summary, the top investors identified trading opportunities by closely monitoring financial reports, shareholder changes, market events, and technical analysis. Their strategic approach allowed them to capitalize on fluctuations and trends within the market, demonstrating the importance of multifaceted analysis in successful trading.

Join the competition now>>

Why hesitate to join the zero-risk competition? Optimize your understanding of moomoo and your trading strategy with a chance to get 10 shares of $NVIDIA (NVDA.US)$ for free! 🎁 Know more>>