Market analyst Regina Meani discusses iCandy Interactive (ASX:ICI).
iCandy Interactive Limited (ASX: ICI $0.17) is a multi-award-winning company with its core business in the development and publishing of mobile games and digital entertainment for a global audience. As an investment holding company, iCandy runs a portfolio of mobile games that are being played by over 350 million gamers worldwide. With a vision to bring together the best game producers across the Asia Pacific Region, the company aims to continue to create great games to be enjoyed by players around the world.
The company’s Corporate Headquarters is in Melbourne Victoria with its Operations Headquarters in Kuala Lumpur, Malaysia and regional offices located in Singapore and Indonesia.
The first few years of trading for the company were patchy but nonetheless set up a pattern for the development of what appears to be a large base. With a high of 25c in February 2016 the price fell to a low of 4c in May 2017 to rebound and reach 22c by October of that year. From there the price trended down in a volatile style until it reached a pivotal low at 1.1c in March 2020.
A reversal phase was completed at 3c in September 2020 with the price more than doubling in one week and pushing higher the following week to reach 9.4c. The price halted in the 2018-2019 resistance around 10c before surging higher in late October, early November to 23.5c. At this point around the previous high, momentum became very overbought and the price pulled back heavily to seek support which was located in the 5-6c area. A two-day turning point was found at 5.3c on 9 and 10 September 2021. The price changed direction and headed towards its barrier around 10c which it surpassed on 12 November to streak higher to halt slightly short of the prior highs at 19.5c on 25 November.
Momentum overrun produced another pullback with the price finding a higher benchmark of support at 13-14c in December/ January. Higher lows bode well for a more positive outlook for the stock. As stated earlier, when the entire action from 2016 is viewed it gives the appearance of a potentially large base. For completion the price would need to surpass the barrier zone between 19.5c and 25c on significant volume participation. When this occurs, the stock would gain considerable upward potential with a preliminary move to 30c and then towards 60c with the possibility of extending gains through $1.00.
The risk to this scenario would be another rebuff from the barrier zone and or a drop through support in the 15-16c area with a break in the short-term uptrend which is currently around 12c.
Image from: https://www.icandy.io/