Weekly ASX Update: AGL Energy Limited FPO (AGX.AX) |
by, James A. Hyerczyk
After making a top at 14.79 on November 23, AGL Energy Limited (AGX.AX) broke sharply, triggering a breakout under the support line of a triangle chart pattern on the 240-minute chart. The move also penetrated the previous swing bottom at 13.96, reaffirming the downtrend and setting up the equity CFD for a test of the next support level at 13.86. A break though this price could trigger a stop-loss acceleration into the Autochartist forecast price zone defined as 13.59 to 13.59.
The quality of this chart pattern is a slightly above average 6-bars. The initial trend which measures the strength of the trend prior to the chart pattern’s formation is a weak 2-bars. The solid 9-bar uniformity rating indication equidistant tops and bottoms as well as numerous successful test of support and resistance levels. The clarity indicator is rated 6-bars. This means that the chart pattern contains a slightly above average amount of “market noise”.
The triangle chart pattern is a non-trending pattern. The gradual narrowing of the support and resistance lines typically indicates impending volatility. The 6-bar breakout rating indicates slightly above average momentum on the move through the support line. Volatility will be needed to drive this price lower especially since the old bottoms at 13.86, 13.76 and 13.68 may impede the break down. Before AGL Energy Limited can even reach the Autochartist forecast price zone it has to go through these levels with clarity and conviction.
About the author: Autochartist
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