What is Happening to the Share Price of Ridley Corporation Ltd?

What does Ridley Corporation Ltd do?

Ridley Corporation Ltd [ASX:RIC] is Australia’s leading animal feed producer. Servicing Australia’s dairy, poultry, pig, beef, horse, sheep, laboratory, pet food, aquaculture and lifestyle industries. Ridley’s 16 sites across Australia produce in the vicinity of 1.9 million tonnes a year of finished feeds and feed ingredients for Australia’s agricultural community.

That’s interesting, but what is the chart telling you?

What is the chart telling you?

I personally find it helpful to bring up a chart. Here’s the weekly chart of RIC:


Source: STEX

Since late last year, the stock has never had more than one week down. That tells you what you need to know about this company. Sales must be growing for this to happen. The trend is up for now.

What now for RIC shares?

The half yearly report released mid February revealed a record result from its core business, up 24% from the comparable prior year. The full year report should be good as well, but you’re seeing that now.

This is how you can get into some longer term trading. By applying the same principals of the daily chart to the weekly. And just continue to raise your stop loss under the prior weekly low, to lock in profits. If you can get on board similar companies that are well traded and have consistent yearly earnings, then trade the weekly trend, it can really make a profitable impact on your trading.

With a little charting knowledge and appropriate risk management you maximise your chances of success. Go here to find out more.
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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