Chart of the Day – Can Codan (ASX:CDA ) keep its head above the $10 waterline?
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Former market darling Codan has fallen on hard times.
We’re looking at two years price action today – and what can be clearly seen is just how pervasive the dominant trend has been in both directions.
The bull run from the March 2020 shake-out was an absolute peach, that saw the name stack on 4+ times from the absolute lows of $4.
Periodic retests of the uptrend were well supported on the way through, and the company continued to grow both its existing operations and by acquisition also.
Conversely, once the rounding top that can clearly be seen in the middle of 2021 properly gave way with the emphatic move below $16, a new downtrend began to accelerate.
With a poorly received AGM in late October, the company again pushed on to the downside, and has recently been clinging to supports at $10.
We are long and underwater, but not below that level.
Up 28c at the time of writing to $10.51, Codan is attempting the first meaningfully positive intra-day candle since inspecting recent lows across $10.
Whilst there is a bit left on the clock today, this is not a trade that we have any inclination to hold below that level if it is shaping up to close below it for any reason at all.
Conversely, there are many upside targets from current levels, the first and most notable being the levels from which it started the recent day of the AGM, at around 1350c.
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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