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AusGroup: Update.

Wednesday, March 31, 2010

AusGroup seems to have some trouble breaking resistance at 61.5c. If we draw a trendline support from 9 Feb, we see the support at 59.5c today, it is quite clear that the uptrend is broken.




However, I would like to point out that volume was rather low and, in fact, it is true for other down days in the past few weeks. Volume has been generally lower on down days and higher on up days for AusGroup recently. This suggests that a longer term accumulation is underway and this is confirmed by the rising OBV in recent weeks. However, with the MFI turning down, I expect some weakness in the near term but I do not expect a crash in price.

If 58.5c gives way, the next supports are at 57.5c (50% Fibo) and 56.5c (38.2% Fibo).  If the price action moves above the trendline support once more, resistance remains at 61.5c.

2 comments:

Hubert wee said...

Yes..I was fortunate to have sold at 0.73 in Jan..

AK71 said...

Hi Hubert,

That was a good exit price. I not vested but it seems to generate a lot of interest amongst traders. So, that got me interested and I look at the charts once in a while. This update was a request by a reader, RK. :)

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