Technicals | Jan 18 2023
The Chartist reports share price weakness into the retracement zone would be the ideal set-up for the next leg higher for shares in Altium.
Daily Trend: Up
Monthly Trend: Up
Support Levels: $24.97 – $23.11
Resistance Levels: $45.30 (all-time high)
Reasons to be cautious (upside potential short-term):
→ There has been good progress in the first four months of FY23.
→ Recent price increases should support growth in the core Design Software business.
→ There’s been a pick-up in hiring activity but momentum looks to be lower than implied opex growth guidance.
→ There are concerns about the impact from the softening macro context on growth prospects.
→ Bullish longer-term patterns.
Over the years Altium ((ALU)) has been a star performer, with strong clean price action the main theme. That is, up to the high made in early 2020.
Since that time, a consolidation phase has been taking place. Not ideal if you’ve been a holder over the past couple of years, but from a pattern perspective it’s nothing out of the ordinary.
In fact, we are viewing it as being bullish in the bigger scheme of things. As we often state, every trend needs a pause. Ideally, it’s setting the stage for the multi-year trend to reignite. More recently price action has become impulsive in nature which is exactly what we want to see.