Chart of the Day: Could AnteoTech keep piling runs on the board?
Health & Biotech
Health & Biotech
Anteotech (ASX:ADO) is another fine example of a chart pattern that we appreciate at Collette Capital.
Namely a company that has demonstrated the capacity to put significant runs on the board when capturing the interest of the market, that is getting over a significant pullback to major supports.
In this case, those supports take the form of both horizontal levels at 16.5c, and the simple 200-day moving average as depicted in red, that currently has a value of ~16.75c.
The getting over part here is implied by the break of the short-term downtrend depicted by the black trend line, which first occurred on Monday this week, and was confirmed by the price action on Tuesday.
The recent tick up and away from the 200-day has been accompanied by a slight increase in volume, which is always welcome.
Most importantly there’s a stack of runway here if the company can maintain an upward trajectory – the first target being 30c and beyond that a broader gap fill target to 39.5c.
No issues with liquidity when it comes to Anteotech – one of its better attributes and something that we are progressively more mindful of given the length of time since the overall market has had a more typical pullback.
We are currently looking for a re-entry after taking a very short-term trading profit on today’s price action, from entry levels earlier in the week back toward the supports mentioned above.
There’s a risk that will prove to be too cute however, and that the larger move may be about to kick off without us.
Steve Collette of Collette Capital Pty Ltd (ABN 56645766507) is a Corporate Authorised Representative (No. 1284431) of Sanlam Private Wealth (AFS License No. 337927), which only provides general advice.
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