Chart of the Day: Could Austin Engineering continue uptrend and reach 35c price target?
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Under new management and with a re-stated plan as to the way forward, Austin Engineering (ASX:ANG) has been presenting the market with compelling price action since re-testing recent lows across 12c in May and June of this year.
After consolidating above 12c, the company has continued has enjoyed a proper uptrend in the last couple of months, enough to even move it above historical resistance at 18c.
Two up-trending lines have been introduced to the chart below, one demonstrating the more acute short-term uptrend, and another that shows a broader positive trend dating back to the lows at the start of the pandemic in March of 2020.
On the proviso that 18c can hold, the stock looks well placed to make an assault upon and potentially push past the highs of early 2020 around 23c.
Austin does have a report to come next week.
It is also worth noting that in recent weeks there have been several lines that have been getting crossed through the stock, presumably as holders associated with the previous management make way for those associated with the new.
It is a key holding in the IMA, and whilst we won’t be immune to taking partial profits on good days if there is sufficient volume, we currently have a medium-term price target of 35c.
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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