12 month daily chart of Australian Agricultural Company
Over the past six months there has been a surge of interest in this beef industry agricultural stock. The share price rallied from $1.25 in April to a high of $2.13 on the 25 July 2016, before dipping back below $2, and breaking support at $1.76, to reach a low of $1.55.
Buyers returned strongly yesterday, with a large range of just on 15 cents, surging above the $1.76 support/resistance level at $1.76. This gain has been sustained in today’s trading, raising hopes for further gains and re-testing of the next higher support/ resistance level at $2.
Technical analysis cannot possibly predict how long this new impulsive move higher will last, but this sharp uptick in fortunes without profit-taking, suggests the market thinks the price will go higher.
I wish to reiterate that retail investment decisions should not be made on technical grounds alone, without the guidance of a qualified financial adviser .
I acknowledge that I have been a long-term shareholder in AAC.