Breaking Out: We've checked the chart and the prognosis for this medtech looks singularly healthy

Breaking Out is a technical analysis-fuelled, short ‘n’ sharp take on chart-busting ASX stocks. Each week, Steve Collette – head of Collette Capital in Melbourne – narrows in on something that’s caught his eye.

Singular Health Group Ltd (ASX:SHG)

Medtech Singular Health made some noise at the start of 2024, and recent price action suggest it could be seeking to end the year on a similar basis.

Early in the year, the stock experienced a sharp rally, running hard from below 4 cents to a peak of 17 cents before entering a prolonged consolidation phase.

During this time, it found strong support around the mid-7 cent level.

Momentum returned on November 20 after the company announced a pilot program and software rollout with a Miami-based group.

The capital raising that came alongside the deal should remove the need for further dilution in the immediate.

Wednesday’s investor presentation gave further insight into the deal and what the levers for success look like.

Since the initial announcement, the stock has held above the 200-day simple moving average, currently just below 10 cents – and this will remain a critical support in the short term.

If the stock maintains short-term momentum, a retest of year highs at 17c could be on the cards.

Beyond that, there are plenty of higher targets to explore from previous iterations of the company.

Collette Capital offers IMA services to wholesale clients only.

The IMA has returned 17.72% p.a. net of any fees as at end November 2024 since January 2015.

Learn more at www.collette.capital

Collette Capital is a Corporate Authorised Representative (CAR: 128443) of Sanlam Private Wealth ( AFSL 337927 ), and only provides general advice.

Collette Capital advise that they and persons associated with them may have an interest in the above securities.

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