What’s Happening to ABC Ltd’s Share Price?
During the previous trading week, Adelaide Brighton LTD [ASX:ABC], one of Australia’s leading suppliers to the engineering, infrastructure and resource sectors, has broken into all time new highs.
A lucky Call on ABC Ltd?
I’ve actually commented previously on this stock in a posting made on February 9. In that post, the following was stated amongst other things:
‘A broker has labelled this stock as expensive based on fundamentals. I don’t trade broker recommendations, nor fundamentals; I trade the chart and that may well be forecasting positive revenue growth.’
ABC grew revenue by 8.9 % — who could have seen that coming? Well, not the broker for one.
OK, here’s what you should do. Go back to that February 9 posting and look at the chart. It was clearly forecasting revenue growth.
Can you see the power in the ability to read a chart? One could have the confidence to ignore the broker’s ‘this stock is expensive’ recommendation, and trade accordingly.
What Now for ABC Ltd?
It’s broken into all time new highs. That’s telling you something — not only about ABC Ltd, but more broadly for the construction sector in Australia. Note the way it’s reacted to the positive results released on Feb 26. That is telling you something further. Of course, you will understand all that if you can read a chart. Go here to find out how. Then the next time you come across a broker recommendation, you will know exactly what to do.
Research Analyst, Cycles, Trends and Forecasts