What is Happening to Adelaide Brighton LTD’s Share price?

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.’

Below, a snippet from the ASX announcement, delivered on 26 of February.
Adelaide Brighton

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.

Cheers,
Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.


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