Scales Corporation Ltd (SCL.NZX)

1 September 2017


Technical Summary: The above chart represents 1 year and each candle is one day. There is not much to say about this chart, most of the price action has occured within the band that we have highlighted on the chart. We believe that this will onen day act as either a significant area of support or resistance. The stock has been in a consolidation period that extends further back than what is shown on the chart. This is following an uptrend that ran through 2015 to the middle of 2016. In this period the stock ran up over 150%. After such a run we view it as bullish that the stock has been able to consolidate these gains, without giving too much back to the market. For traders, Unless you are a trader that likes to swing trade within a trading range there is not much to do here – otherwise one needs to wait until the stock has cleared this period of consolidation before action. For investors, we have no way of knowing how long this consolidation period will last but the period can used as an opportunity to dollar cost average into a position. Another point of interest on the 1 year chart is that the stock has recently pulled back from resistance it encountered at all time highs. The stock has also recently experienced a gap down (highlighted) after the market responded negatively to company earnings. In the sessions
following earnings the stock has clawed back some of these losses.

There is not much to say about this chart, most of the price action has occured within the band that we have highlighted on the chart. We believe that this will onen day act as either a significant area of support or resistance. The stock has been in a c

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