The a2 Milk Company Ltd (.NZX) | 20/09/2017 | 1 Year, Daily Chart
$6 per share. Stock broke through this point and sharply reversed. There could be overhead resistance at this point with profit takers potentially looking to get out at a
$6.25
$5.75
$5.25
$4.75
$4.25
$3.75
$3.25
$2.75
$2.25
$1.75
19/09/2016
17/10/2016
15/11/2016
13/12/2016
15/01/2017
13/02/2017
13/03/2017
10/04/2017
11/05/2017
11/06/2017
9/07/2017
6/08/2017
3/09/2017
“round number”. The stock is overextended now and we would like to see the stock consolidate previous gains before setting up again.
$6 Per share
BUY ME!
Breakouts on high volume
Breakouts coninciding
with increase in volume
Technical Summary: has been the market darling of the NZX. Fundamental performance has been transferred to technical with the stock up over 170% YTD. The 5 year chart looks more like a chart for crypto-currency than a stock. With the stock advancing 210% over the last
5 Year Chart
5.4
4.4
3.4
2.4
1.4
0.4
year it has provided investors with numerous low risk buying opportunities as illustrated above with the stock bursting through resistance on high volume – screaming BUY ME. The stock ran through $6 per share and is now clearly overextended. We expect that the stock is now vulnerable to a pull back or a consolidation. Needless to say we believe that there will be resistance at $6 per share as it will be a logical place for many investors to be taking profits. We would like to see digest these gains during a consolidation period before potentially embarking on further upside.
For those wanting to initiate a position there is nothing to do. Unless you have specific profit targets there is also no reason to sell. However, holders would be advised to have a reasonably placed stop loss to protect wonderful gains in case of character change.