ASX Shares A2Milk Shares (A2M)

TA? I think I'm starting to forget everything I've ever learnt about investing (my brain feels like cold porridge.........)

 

Technical analysis.

 

Thanks Austing, @KayTea for more specifics see my site link.

PS A2M has some probability of going to approx. $6.18 mark but due to some potential resistance here I took the profit. When we see decent retracement I am looking for a return to less than $4.30 which is >20% discount to what I sold for and greater discount than the approx. 15% CGT I paid in SMSF on sale at $5.45. More accurate buy point will be found when more bars are on the chart. A return below $4.30 looks likely at some point although could be a while. This is why I was happy to take part profit a little early because I was aware of the advantage in a buy back scenario. I do intend to campaign into the A2M trend over time (buy and sell a few times over to increase holdings then let it run on) and believe over all the company proposition, quality management and fundamentals will drive a long term successful venture.

No advice

 

$6 hit today.
Looking forward to the $4.30 opportunity as I've been watching it since about that level on the way up

 

I'd like to know if there's been a stock rise as fast for so long with so little retracement?
Seems the only thing that could stop the momentum would be if I bought some!

 

If that's the case @Swuzz, then I'm dobbing you in to the 'shares police' (or some other nonsensical group) to ensure that you're not allowed near them.

I'm enjoying my nice little upwards ride right now, and no party-pooper is going to be allowed to spoilt it, thank you very much!

 

Probability of the retracement is strong from here. The relative strength of this thing against XJO is off the charts

 

I've been waiting for a pull back and now I'm not sure I want to buy!

 

Not yet that's for sure I just SOLD most of my remaining holdings at 7.48 as this is now likely the beginning of the retracement due to obvious high volume sell off that just happened (major volume spike gave the game away that some bigger players have just dumped it for now).

Who knows if we will get a deep retracement, the relative strength is still ridiculous but common sense says we are overdue for a decent pullback. It's a little early to get insight on ideal re-entry prices, once we have a few more bars I will aim to post a chart of price levels of interest. For now I have a buy order sitting at $5.42 but this is just based on simple support level, not much to go on technically until bit more price action develops. Personally I need to buy them back at sub $6.30 to ensure I am allowing for CGT and still getting an advantage in holdings. I am also planning on buying a lot more this time now (was 1% of SMSF portfolio, will increase this to 3%). being aware of the relative strength and volatility momentum of this thing - good chance of a massive payoff for long term hold

 

Early days and not much to go on from pattern completion yet but this is the retracement picture so far. Ideal support zone is $6 down to $4.90. If this is a flatter style correction support levels may not get reached and the vertical timing lines are the best guide if that happens.


Not advice DYOR

 

So how much should I buy?

 

A2M looks like interim high of retracement pattern is forming around first timing lines (probably Monday or Tuesday next week). The fact that price broke above previous high is significant and shows strong momentum is still present. Note high volume spikes (highlighted) both occurring at similar peak price levels. If price forms a running correction pattern meaning C wave low does not take out A low) support at 6.60/6.70 otherwise support at 5.60/5.70 and 4.90/5 zones.

Good chance the low will come around the second set of timing lines: 20 - 24 Dec.

Not advice DYOR

 

I just wish I bought more... but at least I have some. Bought at 6.73 in early/mid November.

 

...and still early days too I will be definitely looking for places to add to position