What’s Happening to the Share Price of AV Jennings Ltd?

What does AV Jennings Ltd do?

AV Jennings Limited [ASX:AVJ] is a leading residential property development company with a name that continues to be one of the most recognised housing brands in Australia.

This company has been part of the Australian landscape for 80 years with experience in home building, land development, pre-planned integrated housing and medium density activities.

That’s all well and good, but what is the chart telling us?

What does the chart look like?

I find it helpful to bring up a chart. Here’s the monthly chart of AVJ.
AVJEN

Source: STEX
The company released a profit guidance today, announcing that signings and work in progress are at their highest levels in 8 years. This should not totally surprise you, if you have been following my postings.

What now for AVJ shares?

Of course it has spiked up on today’s news, into a six year high.

Now this is something we can follow. If perhaps, after a retracement, it should continue on to take out that news — that will tell us plenty about the strength of the residential property sector. More than you will ever read in the financial section of the newspaper.

More broadly, whilst all this construction is going on, it is really hard to forecast an imminent economic recession, as some seem to be calling it.

This is a strong sector to be in right now, for all the reasons distilled into the 18 year real estate clock. You can learn more about the real estate cycle and the clock here. Every stock investor should know it.
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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