Australian Agricultural Company (AAC)

The two charts below are 1) a twelve month daily chart of AACo from Metastock using ASX data from Paritech, and 2) a two and a half year weekly chart from Incredible Charts.

AAC has been a profitable investment for me on four occasions in the past, but not so recently. I took positions in Australian Agricultural, Australia’s largest cattle company, October/ Nov 2017 after a retracement that seemed at the time to have found support at $1.45. I did catch a rebound that took the share-price to $1.63, but it was a counter-trend impulsive move, and I failed to exit until two months later, after my stop/loss position was hit.

It may however now be opportune to re visit AAC’s position in the wake of the FY 2018 profit result released on 23 May 2018.

1 Year Daily chart of AAC

AACb Dy end May

The share price has been on a down-ward trajectory for the whole of the past year and this announcement clarifies its financial position. In the two days of trading since then, buyers have bid the share-price up from long-term support at $1.10 to an end of week closing price of $1.20.

Two and a half year weekly chart of AAC

aac_ax08jan16_to_10jul18

The weekly chart shows this price action has touched the trendline of the last twelve months, and raises the possibility of further gains. The Fibonacci retracement levels included on this chart suggest that if the trendline is penetrated a target of $1.48, corresponding to the 38.2% Fibonacci level, might be realizable. Breaking of $1.10 support would be stop/loss signal.

Readers are advised to seek the advice of their stock-broker for further information as to the prospects of AAC for the coming year.

 

 

 

 

 

 

 

 

 



Categories: Chart Analyses, Chart Review

Tags: ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: