Appen shares jumped 12.50% on Monday, with trading volume expanding to A$22.14 million within the first three hours of trading. Appen has risen 22% in the past week, with a cumulative gain of 214.29% year-to-date.
Appen technical analysis chart:
Technical Analysis:
Support: A$1.52
Resistance: A$2.2
Price range A$1.52 to A$2.2: The trading range indicates a heavy concentration of buy orders, accumulating a significant amount of profit-taking positions, which raises the risk of selling pressure. The stock price is in an upward trend with strong momentum. It repeatedly touched around A$2.20, creating a certain upward resistance. It is necessary to observe whether the stock price can effectively break through the A$2.20 level. In the event of a decline, attention should be paid to whether support near A$1.52 is effective.
Market News :
Appen’s H1 results reflect a stabilisation and return to revenue growth during Q2 FY24. Group operating revenue of $113.4 million decreased 18.4%, primarily due to termination of Google contract. Excluding the impact of Google, revenue decreased a modest 1.5%. New Markets revenue of $49.8 million up 28.3%, benefiting from strong growth in China and Global Product. Underlying net loss after tax4 of ($11.8) million, a $22.4 million improvement compared to pcp.
FY24 will mark the first full year of realizing the benefits from the $60 million cost reduction initiative undertaken in FY23. The company maintains a strong emphasis on achieving a positive cash EBITDA, with the goal of becoming cash EBITDA positive on a run-rate basis in the early part of the second half of FY24.
Overall Analysis:
Fundamentally, focus on the company's performance and operational status. Technically, pay attention to whether the support levels hold and if the resistance levels can be effectively breached.
In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.
Source: Appen
