I last reviewed Boral Limited six months ago on July 1 2018.
A news release on 24/04/2018 reported that Earnings in the March Quarter had been below expectations in both Australia and the US, mostly due to adverse climatic conditions.
As a result, after having touched a high of about $8.22, the share price fell back into a trading zone between support at $6.20 in May and $7.20. The catalyst for a limited rally in the share-price appeared to be a company expectation for improved earnings in the June quarter.
This was short-lived, reaching a high on the 30/08/2018, short of breaking through resistance at $7.20. I sold my shares in Boral in Zone B.
This updated 12 month daily chart of Boral has shown further decline in the share-price into a new lower zone (C), between $6.20, and current support at $4.70, not far off a long-term support level at $4.50.
The FY report for 2018, and Trading Report for 1Q 2019 released on 30/10/2018 seems to have been favourably received by the market, with the price action breaking through the down-trend, an uptick in the RSI from the over-sold zone, and the formation of an inverted head and shoulder pattern. The next technical milestone to be met would be the emergence of an uptrend.
Although I find 12 month daily charts suit my preferred investment horizon best, I believe it is important to take into account longer-term time-frames as well. A 5 year daily chart of Boral is included to display the main trading zones.
As always, readers should obtain personalised stock-broking advice and not base their trading decisions on technical analysis alone.
Categories: Chart Review