MicroCloud Hologram Inc

MicroCloud Hologram Inc. (NASDAQ: HOLO) is a holographic digitalization technology service provider in China. The Company is focused on providing holographic technology services to customers around the world. The Company operates through two segments: Holographic solutions and Holographic technology services.

Recent Financial and Business Updates:

• MicroCloud Hologram Inc. Announces Plans to Join Communications Industry Association: MicroCloud Hologram Inc. has unveiled its intention to become a member of the Communications Industry Association. The association is a national, non-profit organization dedicated to fostering technological innovation, technology export, and overall industry development within the communications sector. Operating under the guidance of the Ministry of Industry and Information Technology, the Association plays a pivotal role in industry management, information exchange, business training, international cooperation, and consulting services. By joining, HOLO aims to contribute to the advancement of the communications industry, accelerate the development of new information technology, and facilitate the integration of innovative industry technologies. The Association's regular meetings serve as a platform for members to exchange experiences, discuss industry dynamics, analyze market trends, and collaborate on countermeasures. The move aligns with HOLO's commitment to promoting technological progress, enhancing product quality, and fostering economic and technological cooperation in the global communications market.
• MicroCloud Hologram Inc. Provides CMS for China's Leading New Energy Vehicle Company: MicroCloud Hologram Inc. (NASDAQ: HOLO), a prominent provider of Hologram Digital Twins Technology, has announced a significant development through its subsidiary, which is now offering Content Management System (CMS) services for China's largest new energy vehicle company. This partnership, formalized through the Generalized Streaming Media Control System (CMS) Development Agreement, is poised to revolutionize the landscape of the new energy vehicle sector. The Chinese new energy vehicle giant boasts the highest sales volume globally, surpassing 2.3 million cumulative car sales by October 2023. Operating in over 400 cities across 70 countries and regions, this strategic collaboration is expected to have a substantial financial impact on both companies. Under the agreement, HOLO is tasked with designing and developing a comprehensive streaming media control system, covering hardware and software solutions for camera, controller, and display modules. Additionally, the agreement encompasses data analysis, testing, and the provision of holographic advanced driver assistance system (ADA) software and hardware development services. HOLO's integration of holographic vision solutions into new energy vehicles aligns with the global success and influence of the partnered company, further enhancing the overall operational income for both entities.

Technical Observation (on the daily chart)

The Relative Strength Index (RSI), calculated over a 14-day span, stands at 92.94, currently upward trending and in overbught zone, signifying the likelihood of either more consolidation or some correction. Adding to this, the stock presently finds itself positioned above both the 21-day and 50-day Simple Moving Averages (SMA), which could function as a dynamic short-term support levels.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

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

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). 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 orange 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 red and green 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 as liquidity in stocks helps with 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: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 08, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.