AGL Energy Limited

 

As shown in the Metastock candlestick chart below, (with ASX data supplied by Paritech), AGL Energy has proved to be an excellent portfolio selection for retail investors, rising from a low of $12.55 on the 12/12/2014, to a high of $28.47 on the 13/04/2017.

However in the past year it has entered into its present primary downtrend. The Fibonacci retracement plot shows that 50% of these gains were forfeited before a welcome rebound emerged at the $20 support/resistance level two weeks ago.

 

 

AGL2 May 18

5 year Weekly Chart for AGL Energy

The dilemma for shareholders and would be shareholders, is whether or not it is worth taking the risk of buying into a counter-trend rally, to take advantage of the present price weakness.

From a technical point of view it would seem likely that the price action will now re-enter the trading zone 5,  between $23 and $26. It would take an impulsive move upwards to surpass the resistance of the previous high at $26.50 to arrest the down-trend and raise hopes of still higher prices.

It is suggested that those readers contemplating now adding to their portfolio with a new position in AGL shares consult their broker or financial adviser for additional information as to AGL’s future prospects.

 

 



Categories: Chart Analyses

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