The a2 Milk Company Limited (.NZX) | 17/05/2018 | 3 Month, Daily Chart
$15.00
The three month chart shows that the stock is currently being priced
by the quarterly update cycle.
$14.00
$13.00
$12.00
News gap
$11.00
$10.00
News gap
Looks initially like the stock has held the previous
earnings gap
$9.00
18/02/2018
19/03/2018
18/04/2018
Technical Summary: By now most are familiar with the a2 Milk story. If not the 5 year chart on the right probably gives you all of the
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information that you need – the stock has been the market darling of a market that over the last few years has been full of darlings. On the big
5 Year Chart
chart above I have moved away from the 1 year chart as we have all seen it before. I have decided instead to put a 3 month daily chart, I feel like
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that this tells us more about what is currently driving the stock. Moving from left to right. On the left of the chart the stock gapped up on an
earnings update that moved the stock from less than $10 a share to nearly $13 in two days. Since that time the stock attempted to carve out a
base and was doing a good job of it. Until the most recent news gap yesterday. This time the stock moved to the downside. This indicates that
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the stock is currently been driven by its quarterly news updates. The market is waiting for a news update and then quickly trying to price the stock.
It will be interesting to see if this pattern of behaviour continues going forward.
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