Chart of the Day: Cutting through the chop with Harvest Technology (ASX:HTG)
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Harvest Technology (ASX:HTG) is in uptrend.
This is a two-year chart, and what one gets a sense for when allowing this sort of timeframe is the degree to which certain stocks can generate a lot of ‘chop’ whilst still confirming an overall positive trajectory.
Since the initial introduction of the core technology to the group back in 2019, the stock has continued its ascent, with the exponential 200-day moving average in blue and the simple 50-day moving average in green both providing solid support through the bulk of calendar year 2020.
Whilst new highs have come in 2021 in the heady days of January with a top print of 50c thus far, the stock has not been immune to more meaningful pullbacks also, trading sub-30c momentarily just a mere couple of months later.
Most technicians on a good day will let you know that trend lines can involve some creative licence, and I think the black up-trending line that I have added to this chart is such an example.
All the same, it does give a sense for an overall positive trajectory on the stock, and as a medium to long term holder, this trend line gives a sense for the preference for the stock to now hold at least in the low 30s, as we begin to move into the second quarter.
The opportunity in Harvest is an intriguing one because the vision for the company is so grand as to cause some angst amongst would-be investors and/or funds when they first get the pitch from management. Generally speaking, in its most recent annual report, it is aiming to be an internationally recognised satellite services provider by the end of 2022.
Lots of words about just what the company is up to and why we see them as highly desirable is beyond the scope of this article.
Having said that, it is the largest position in the IMA service operated by Collette Capital, a steady winner overall to date, and we are entirely voting with our feet as to which way we think things will play out for this communication protocol and provider of the future.
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 +24.57% p.a. net of all fees as at the end of February 2021 since inception in January 2015 (using the Time Weighted Return method of calculating returns).
Learn more at www.collette.capital