What is happening to the Adelaide Brighton Ltd’s Share Price Lately

Adelaide Brighton ABC

What’s happening to Adelaide Brighton Ltd’s Share Price?

Shares in the construction materials provider ADELAIDE BRIGHTON LTD [ASX:ABC] have made strong gains on the ASX the past few days.

Why is this happening to ABC Shares?

The price action may be signalling increased building and construction around the country. Strongly tied to the building and construction industry, Adelaide Brighton is one of Australia’s leading suppliers to the engineering, infrastructure and resource sectors.

Here’s a daily chart of ABC:

ASX:ABC Adelaide Brighton

Source: STEX

What Now for Adelaide Brighton Ltd?

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.

You could also look at the charts of similar stocks strongly linked to the construction sector — Boral [BLD], James Hardie [JHX] and larger players such as Mirvac Group [MGR], Lend Lease [LLC] and Stockland [SGP], just to name a few.

So what’s next for the economy at large? The charts are telling you. But to take advantage of that, you need to understand where we are in the 18 year real estate cycle — and how to read a chart. Both of which we know a bit about at Cycles, Trends and Forecasts. Go here to find out more.

Don’t let the ‘bleak brigade’ blind you to the opportunities that lie ahead. With lenders competing, credit more plentiful, rate cuts and more offshore buyers, we have a big set up coming, perhaps the biggest yet.

Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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