Appen: Bottom In Place

Technicals | Nov 19 2019

By Michael Gable 

In this week's report we revisit Appen ((APX)). It is a stock that has done very well for us in the past. We sold it in early August and have commented that it should drift all the way back to under $20. With some of our clients picking it up on Friday, and the nice move higher yesterday, we decided to provide an updated chart on why it is looking positive again.

After reversing from the uptrend in early August, APX continued to look weak, drifting back towards of sub-$20 target. Price action in the last week has looked bullish with the stock moving higher on good volume and taking out the October high. Yesterday's gap-up is further confirmed that a low is in place. APX now has a very good chance of moving to a new high, although it will encounter some natural resistance near $30. Buying it here and having a stop under the November low doesn't make it a good trade anymore, so any new purchases should ideally be made on any weakness with a stop closer by under yesterday's low.

Content included in this article is not by association the view of FNArena (see our disclaimer).
 
Michael Gable is managing Director of  Fairmont Equities (www.fairmontequities.com)

Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services. 

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2

Disclaimer

Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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CHARTS

APX