Various people would already know this but will post up anyway to help ease some peoples share price discomfort.
Another big financial element working against Brainchip's share price in the last couple of years but also more just in the last two months is worldwide small cap
Tech investor sentiment. This tech sentiment has been declining off 2021 highs but also in the last year has been in a range bound up and down trading pattern and now bouncing off a low support line.
I have mentioned this previously about the general tech market sell down since 2021 but this below chart will highlight how small cap tech (speculative tech) has been sold down on the Nasdaq and flow on effect to all markets. The second chart is the most interesting.
The first chart is a NASDAQ Small Cap chart (NQUSS(close to the Russell 2000)) and this chart view on tech shows the worldwide effect on all small cap tech stocks on any share market as it highlights overall small cap tech current investor sentiment(manipulation also) and if it's selling down......your small cap tech company will sell down as well unless they have revenue coming in or market breaking news to move the SP needle in a different direction.
As I have mentioned previously small cap tech has been sold out of since Nov of 2021 - this was the start of interest rate rises against back drop of too high inflation - with a risk of recessions in the winds also. The chart shows an added localised sell down from start of August this year. As you can see from the second chart we are hitting of a major tech support level (green line) and the market will typically turn around for tech again which will also probably coincide with the end of our the ASX200 BRN sell down(hopefully ends this week). I think purposely Brainchip are watching these market elements and only going to release their Akida 2.0 news once they can see market forces will be favourable to a release of news and not be fighting two technical sell downs.
The small bright side- All my small cap tech, fin tech and bio tech stocks that are still working towards commercialisation have all been sold down again in the last two months on the ASX - not fun to watch but when you can see the global sentiment on tech and largely due to high interest rates and risk of recessions you know why generally your stocks are being sold down and it's not 100% the companies fault (sure some is missing expectations) - a lot is also just he ebb and flow of the tech sentiment worldwide. The BRN sell down is doubled down unfortunately due to the sell the fall out of the ASX200. It's good to understand it for peace of mind that it is not one singular company BRN - it is affecting thousands of companies. Next stop - the market should turn up!
What is nice to see is the green support line is a definite low support line for the small cap chart and it is rising over time. (Exclude the crazy black swan COVID 19 sell off of 2020)
Here is a zoomed in view below of the last year and shows since the start of August small caps techs were being sold down again in a range trading pattern - good to see as it shows some stability. What is great is that it is pretty much at bottom support again and the market will see the oversold state and usually start buying small can tech again which helps it up. Tech is still not fully out of favour as the trend is moving up slightly from a bottom support perspective. I am not saying BRN can't go lower but what I am saying is that BRN has some general market forces against it on top of company challenges and
it is a time thing that solves the tech sentiment problem. Hard to watch SP going down but as long as the company is financially viable and achieving their plan it is easier to withstand. Seeing general market forces/insto players are pushing the prices of all small tech down then it is easier to watch with that knowledge. Not just a BRN thing.
Tech due for a turnaround soon and hopefully ASX200 BRN sell off concludes this week with also most short exiting through the exercise.