Our ALGO engine triggered a buy signal in A2 Milk into yesterday’s ASX close at $9.81.
This “higher low” pattern is referenced to the intra-day low of $9.19 on May 23rd.
Despite falling formula prices in China, recent broker notes from both UBS and Goldman’s have positive ratings, citing robust net earnings results through 2020.
It’s worth noting that A2M is a high growth, low yielding stock and investors should apply a stop loss below the $9.10 level.
A2 Milk
Shares of A2 milk have opened over 15% lower to $9.80 after reporting lower guidance in their trading update and full year outlook.
The company reported that they expected total revenue near the NZ 920 million mark. This materially below the NZ 950 million the company was shooting for earlier this year.
Technically, we see scope for A2M shares to fill the price gap from February and find support near $9.00.
A2 Milk
Level 17 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453