Tegel Ltd (TGH.NZX)

10 October 2017

Technical Summary: Our first technical report on TGH was online on the 1st of September 2017. Since that time the situation with the company has not really changed. Good support has been found at around $1.22 per share as highlighed on the chart with the purple line. Whereas there is clear resistance between $1.33 and $1.35 per share. This is not all that surprising considering the amount of overhead supply that exists after the previous downtrend. The stock therefore remains range bound. Ideally we would like to see a tightening of price, this would indicate that selling supply had dried up. We would then like to see good volume come into the stock. From a technical perspective the stock is then buyable as soon as it its the buyzone that is indicated on the chart. This will be a low risk trade as stop losses could be set if the breakout fails and the stock returns back to its previous trading range. Obviously any break of support would be bearish.

The Tegel chart is an extension of the last update as it trades in a tight range. We are waiting for a catalyst to drive the stock either on the upside or downside.

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