Price has continued to move up strongly (albeit a 4.3% fall this week) and the comments below re a $5.00 target are unchanged. Price still needs to close above $3.56 however.

9 September 2020

ABC looked potentially promising at the time of my analysis on June 19 but I never traded it because price did not move up. It ultimately fell back strongly and remains 15% below the June level. It may be working on a ‘cup and handle’ pattern with resistance at $3.56. Price has recently made a move to the high side (a bar whose price action is entirely above that of the bar forming the low of what could be the ‘handle’). Other construction related stocks seem to be moving up as well and if ABC can break that overhead downtrend then it has a target of $5.00. While an aggressive buy based on the break to the high side and the promise of a short/medium term pattern, ABC is probably a good long- term hold at current prices but especially once it closes for 2 weeks above the overhead downtrend.

ABC 9Sept2020

19 June 2020

ABC  sailed right through an earlier target about $3.10 and if it closes above $3.58 with some volume then I’d say there is a target of $3.95 - $4.00 ($4.04 theoretically). If it moves up from today above $3.37 (previous daily high ) then that’s a buy signal, but price really needs to break above that down sloping trend line (black solid line) to be a strong buy

All theory, but I’ll be interested to see where it goes. Covid related issues around the virus impact on builders is probably restraining price.

ABC 19 Jun 2020

 

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

Sorry, this website uses features that your browser doesn’t support. Upgrade to a newer version of Firefox, Chrome, Safari, or Edge and you’ll be all set.