This report is an updated version of the report published on 10 June 2024 at 07:04 AM GMT.

Company Overview: Just Group PLC (LON: JUST) provides various retirement income products and services to individual and corporate clients.in the United Kingdom. It offers defined benefit de-risking solutions, guaranteed income for life, secure lifetime income, care plans, and lifetime mortgage service. Ondine Biomedical Inc (LON: OBI) a Life sciences company, engages in the research, development, and commercialization of antimicrobial photo disinfection therapies in Canada and internationally. Its product platform is Photo disinfection, a topical light-based antimicrobial technology that eliminates harmful pathogens. This Report covers the Price Action and Technical Indicators Analysis along with the Target Levels, Stop Loss, Support Levels, Resistance Levels, and Recommendations on these two stocks.

FTSE All-Share Index (.FTAS) Market Round-Up

The FTSE All-Share Index had a rough week previously but seems to be showing some resilience. potentially spurred by positive sentiment in Asian and US markets. The index is trading above a resistance zone and trend line, suggesting some bullish momentum. From a technical standpoint, it's interesting that the RSI (68.32) moving upwards indicates strengthening buying pressure, and the fact that the current market price is above the 21-period SMA and 50-period SMA suggests some support at those levels. 

Global Markets Wrap-Up

Wall Street witnessed positive movement last week, where the S&P 500 settled at 5346.99 with a gain of ~1.32 percent, while the NASDAQ Composite Index settled at 17133.13 with a gain of ~2.38 percent for the week ending June 07, 2024. 

Having understood the US market performance over the past week, taking cues from major global news, and based on technical analysis of the FTSE All-Share Index (.FTAS) for the upcoming week, now have a look at the two LSE-listed.

stocks pick from the technical analysis standpoint. Noted below are the recommendations based on entry price, target prices, and stop-loss for Just Group PLC (LON: JUST) and Ondine Biomedical Inc (LON: OBI) for the next 2-4 weeks duration:

Just Group PLC (LON: JUST) Noted below are the key price indicators for the recommended stock:

Price Action Analysis (on the Weekly Chart)

On the weekly chart, JUST’s shows some positive signs on the weekly chart. The observation that prices are trading above the last resistance and breakout level on the weekly chart does indeed indicate bullish momentum. Additionally, it's a good sign that the stock price is supported by both volumes and the RSI level, indicating potential for further upward movement. The mention of an important resistance level at GBX 120.00 is noteworthy. If prices continue to rise, they may indeed test this level in the short term, possibly within the next 2-4 weeks.

Technical Indicators Analysis (On the Weekly Chart)

The RSI moving in the positive zone with a reading of 59.85 suggests that the stock has some bullish momentum, supported by volumes indicating increased trading activity. The CMP is trading above the trend-following indicators 21-period & 50-period SMAs and may act as a small support level.

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, Just Group PLC is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decisions 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. The summary of recommendation is as follow:

Ondine Biomedical Inc (LON: OBI)

Price Action Analysis (on the Daily Chart)

On the daily chart, OBI’s price is trading above the last support, along with a rising trend line, indicates bullish momentum, especially when supported by positive volume and RSI levels. The identification of an important resistance level at GBX 8.04 further supports this analysis. If the bullish sentiment continues, prices may indeed test this resistance level in the short term, possibly within the next 2-4 weeks. Monitoring these indicators and levels closely can help in gauging potential trading opportunities.

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, the RSI (14-Period) is moving in the positive zone with a reading of 48.11. The volumes also seem supportive of an upside movement. The current market price trading above the 50-period SMA and the 21-period SMA crossing over the 50-period SMA suggest a strong bullish sentiment, supporting potential upward movement in the short term.

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, Ondine Biomedical Inc looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decisions 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. The summary of recommendation is as follow:

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

Upcoming Major Global Economic Events

Market events occur on a day-to-day basis depending on the frequency of the data and generally include an update on employment, inflation, GDP, consumer sentiments, etc. Noted below are the upcoming week's major global economic events that could impact the FTSE All-Share Index and listed stocks’ prices.

Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided 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 stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks, etc.

Note 1: Individuals can consider exiting from the stock if the Target Price mentioned as per the technical analysis has been achieved and subject to the factors discussed above.

Note 2: How to Read the Charts?

The Green colour line reflects the 21-period moving average while the red line indicates the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black 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.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume and liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

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: In general, it is a level to protect further losses in case of unfavorable movement in the stock prices.

Risk Reward Ratio: Risk reward ratio is the difference between an entry point to a stop loss and profit level. This report is based on ~60% Stop Loss of the Target 1 from the entry point.

A trailing stop-loss is a modification of stop-loss in case of favourable movement in the price to protect the gains. Individuals can Trail the Stop-Loss as per the aforementioned levels if the stock price achieves more than 50% of the Target 1. Individuals should consider exiting from the position as per the Trailing Stop-Loss level if the price starts moving downwards after achieving more than 50% of the Target 1.

The reference date for all price data, currency, technical indicators, support, and resistance levels is June 10, 2024. The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

GBP: British pound sterling

GBX: British pence sterling

RSI: Relative Strength Index

Note: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.