Fundamental backdrop: Westaim’s Q2 2025 results show a dramatic swing in profitability – the net loss shrank from $17.1 million a year ago to $0.2 million (‑$0.01 LPS vs. ‑$0.80 LPS). In the same period, the Asset‑Management segment added $1.2 billion of AUM and programmatic capital, a clear signal that the core business is scaling. With a sentiment score of 65 (moderately bullish) and a headline‑level “loss‑reduction” story, the fundamentals are likely to trigger a short‑term upside as analysts and retail investors re‑price the risk profile of the stock.
Technical picture & price action expectation: On a daily chart, Westaim has been hovering near a $0.30‑$0.35 range since the start of Q2, with the 20‑day EMA sitting just above the recent lows and the 50‑day EMA trending upward. The loss‑reduction news is expected to provide a catalyst that pushes the price above the 20‑day EMA and the $0.35 resistance level, potentially targeting the next psychological barrier around $0.40–$0.45. Volume spikes on the earnings release would confirm the move; if volume is muted, a modest 3‑5 % bounce is more realistic, with the $0.35–$0.38 zone acting as a short‑term target.
Actionable take‑away: Traders could look for a breakout‑above‑$0.35 on elevated volume as a long entry, placing a stop just below the 20‑day EMA (≈ $0.31) to protect against a false rally. Given the positive fundamentals, a tight‑range swing‑trade from $0.33 to $0.40 over the next 1‑2 weeks aligns with the expected short‑term sentiment boost, while remaining mindful of broader market risk and any pending regulatory or funding news that could reverse the momentum.