Boral Limited

I have been a long-term investor in Building Materials manufacturer Boral Limited and it is just over a year since my last review after the Headwaters acquisition.

!2 month daily candlestick chart of Boral Limited

BLD Dy 1 July 18

This chart shows how the share price has moved since then. It bottomed at about $6.45 after the capital raising for the Headwaters acquisition, and then climbed steadily to a peak just over $8 in early February this year.

In the trading zone 4, there is a well defined head and shoulder pattern, following which the share-price declined to find support in May 2018 at $6.20. This has coincided with a reduction in earnings expectations, particularly in the North American Division.

However the expectation is for a better June quarter, and accordingly  a double bottom has been formed, and the share price has risen into trading zone 2.

It is my contention that although it is trading news that is the main driver of price movement, market response is unpredictable and is best monitored by technical analysis.

Hence I now include references to salient company announcements on most charts I now post.

Readers are advised not to rely entirely on technical analysis, but to always seek appropriate stock-broking opinion tailored for their financial situation.

Categories: Chart Analyses

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