What’s Happening to the Share Price of TPG Telecom Ltd?

What does TPG Telecom Ltd do?

TPG Telecom Ltd [ASX:TPM] is a telecommunications company providing ADSL2+, NBN, Fibre Optic and Ethernet broadband access, to residential users, as well as large businesses.

TPG has been investing heavily in owning infrastructure assets and expanding its fibre-optic cabling network to cater for further expansion. Its previous acquisitions such as Pipe Networks and AAPT owned extensive fibre-optic assets.

Their most recent merger with iiNet, now makes TPG one of biggest providers of fixed line broadband. This has them overtaking Optus and second only to Telstra.

Okay, but what is the chart telling us about TPG?

What does the chart look like?

I find it helpful to bring up a chart. Here is the monthly chart of TPM.

TPG Telecom chart

Source: STEX

Can you see the share price has never had more than two months down; that tells you plenty about TPM shares. Note for the last six months, the share price has simply gone sideways. This is in stark contrast to the general market which has been heavily sold down. The shares are in strong hands presently.

What now for TPM shares?

Will the recent acquisition of iiNet be a good one? Well you don’t need to do the fundamental analysis, the market will tell you. Note, for the last six months the share price has been finding resistance and support at certain levels. When those levels of resistance or support are broken, then you will have your answer.

If that previous paragraph makes little sense, which it might, then you absolutely must go here, to understand. Your investment knowledge will go up a gear.

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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