Chart of the Day: Archer (ASX:AXE) fixes target on $2, before potential breakout to all-time highs
Link copied to
Archer Materials (ASX:AXE) has enjoyed a stellar calendar year 2021 in terms of price action, pushing from relative obscurity in the order of 50c at the start of the year, to a zeitgeisty $3+ in August.
It has always been an excellent technical stock, with horizontal supports, trend lines, and moving averages all appearing to confer meaning onto the subsequent price action.
One can see that on the below chart the exponential 200 day moving average in light blue provided excellent support to the stock during the middle part of the year, when it came back to test supports below the 80c mark after initially running to above $1.
Once it got moving again, the next impulse was a lot more tenacious, and took it all the way to $3.
Now it has (quite quickly might I add) finished digesting a reasonably sized placement, and is put a solid close on the boards yesterday on news flow from the morning.
There is also a little short-term gap that it might look to fill to 169c, which would also take it to and perhaps beyond the broader and more moderate uptrend line in black.
If it were to get beyond that, the next target is $2, and then all-time highs.
No need to risk this position below recent lows, and that means a close below 142c and it is out.
Archer is delightfully unburdened by revenue at this stage of its evolution, and also fits into the difficult to understand stable of stocks in and around quantum computing on the ASX (see SOR, and to a degree BRN).
As of today we are long, and favour our chances that it will continue north from here.
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.
Collette Capital only makes services available to professional and sophisticated investors as defined by the Corporations Act, Section (s)708(8)C and 761G(7)C.
The Collette Capital Wholesale IMA Strategy has returned +24.83% p.a. net of all fees as at the end of September 2021 since inception in January 2015 (using the Time Weighted Return method of calculating returns).
Learn more at www.collette.capital