The a2 Milk Company Limited (.NZX / A2M.ASX)

26 February 2018

Technical Summary: In terms of a 5 year chart you do not get much better than what has delivered investors. Over this period the stock has gone from $0.50 per share to $12.65. This is overwise known as a 25 bagger, which you do not see everyday. The stock has been like a sportsman that is never out of form and has continued this form over the last year. Most recently in a spectacular fashion with the stock adding 50% in less than a week. This is after the stock had consolidated across a 3 month base. The stock had attempted to break out of its base but was held back from the correction in the wider market. Once the pressure came off the market and the company results were out the stock burst to the upside on massive volume. The stock now sits overextended and we cannot buy it at this juncture. We would like to see the stock form a constructive base before looking again. For long term holders there is no reason to sell unless you were wanting to realise a significant profit.

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