This is a 12 month daily candlestick chart of Australian Agriculture Company, supplier of Packaged Food and Meats.
My objective in these reviews of some of the charts listed on the Australian Stock Exchange is to highlight simple technical features that could help retail investors to better time their investments in the ASX.
AAC shares were in great demand in the first half of the past year, almost doubling, rising from a low of $1.12 to a high of $2.13 on the 25/07/16. .
The latter half of the year has seen the share price ease, forming lower highs on three occasions, but each time the corrective move lower found support on a resistance/support line at about $1.56.
Coming at the end of an impulsive move lower, the arrow on the chart identifies a bullish engulfing pattern. Such patterns alert observers that buyers could re-enter the market, and turn around the share price.
Sooner or later the share-price must break-out through the converging sides of the triangle. The probability is a break to the upside. If so the progressive targets to watch for would be the previous highs at $1.75, $1.95 and $2.10.