3 stocks that can still go a heck of a lot lower!

Marc Kennis Marc Kennis, December 12, 2022

We found three ASX-listed stocks whose charts signal further potential downside to their share prices, based on technical analysis. 

 

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1- Corporate Travel Management (ASX: CTD)        Market capitalization: $2.1bn        Share price: $14.21 

The company manages the purchase and delivery of travel services for the corporate market worldwide.  

The downtrend in CTD’s share price that started in May 2022 (the blue trendline on the chart) has recently gained momentum and the share price broke the support level of $14.50 (the red line on the chart).

From a technical analysis point of view, this development opens up the way down for the share price to fill the gap to $12.00 (the green line on the chart) that was made in August 2020, suggesting another 16% downside potential to the current share price of $14.21. 

A confirmed break above $15.00 would render this expectation invalid. 

 

Stock

Corporate Travel Management, Daily Chart in Semi-log Scale (Source: Metastock)

 

2- Life360 (ASX: 360)        Market capitalization: $1.1bn        Share price: $5.55 

The company develops and sells the Life360 mobile application that provides communications, driving safety and location-sharing information for families. It also offers Jiobit, a wearable location device for young children, pets and seniors. 

360’s share price started an uptrend in June 2022 (the blue trendline on the chart) to recover some of the losses it made from the all-time high of $14.00 in November 2021. But in a recent development, the share price has broken the uptrend as well as the support level of $6.00 (the red line on the chart).

From a technical analysis point of view, this signals bearish sentiment on the stock that opens the way down to the next support level at $4.50, signaling 19% downside potential from the current share price of $5.55. 

A confirmed break above $6.00 would render this expectation invalid. 

 

Stock

Life360, Daily Chart in Semi-log Scale (Source: Metastock) 

 

3- Incannex Healthcare (ASX: IHL)        Market capitalization: $281m        Share price: 19.5 cents 

Incannex Healthcare is an Australian pharmaceutical company developing 4 medicinal cannabinoid pharmaceutical products at different clinical stages for the treatment of Obstructive Sleep Apnea, Traumatic Brain Injury, Sepsis Associated Acute Respiratory Distress Syndrome and Temporomandibular Joint Disorder.  

IHL’s share price has been on a downtrend since March 2022 (the red trendline on the chart) and it broke the support level of 20 cents (the blue line on the chart) after it announced a $13m share placement at 20.5 cents per share.  

From a technical analysis point of view, breaking the support level of 20 cents potentially opens the way down to lower levels. With the next support levels at 15 cents and 10 cents (the green lines on the chart), the chart is suggesting at least a 24% downside potential from the current share price of 19.5 cents. 

A confirmed break above 20 cents would render this expectation invalid. 

 

Stock

Incannex Healthcare, Daily Chart in Semi-log Scale (Source: Metastock)

 

No time to do stock research, but you still want to invest?
 
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

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