PERFECT WYCKOFF RE-ACCUMULATION - ASX:A2M - THE A2 MILK COMPANY
From 2015, the A2 Milk Company saw an amazing growth stage from less than $1 a share right up to a peak of $13.78 in February 2018.
On the 22nd February we had obvious climatic action. The stock was up over 50% in two days before retracing on the 22nd.
The stock began to fall. On the 16th May we see our first sign of possible buying interest again with our preliminary support. Large Bar down (using the true range) closing in the middle with a very large spike in volume.
The stock can’t rally so we fall lower. A week later in the 23rd May we get more higher volume but the next day we see a great reaction.
The stock rallies and we see our first indication with a stronger rally then the previous three. This is called our automatic rally.
The stock falls and looks to retest the previous low, notice the volume is a lot lower when we retrace the $9.19 level once again. This is our secondary test.
The first phase of accumulation is complete, we have seen stopping action in the stock.
Phase B sees the stock rally and this time is able to make a higher high than the AR level. We upthrust that level and fall lower.
Phase C begins with a spring of the $9.19 level. The psychology around this is to retest the supply and gauge if weak hands are still holding on. Once they see the $9.19 level broken, we get as low as $8.14. The volume increases and we may have just seen the completion of transfer from weak hands to strong hands, as the stock rallies. Any one that bought at higher levels and has seen the stock test a level three times and that fail it, will panic and sell.
We retest the $9.19 level once again and notice the volume is a lot lower. Phase C is complete.
Over the next three months the stock rallies towards the top of the trading range, with continual tests.
We break through the creek and have our final retest - a back up to the creek, it is on low volume. Perfect retest.
Phase E or “mark up” occurs after this point and the stock begins to move higher on increased volume and demand.
If you had of placed a trade at the “test” area, with a stop under the spring, you would have seen a move of over 50% between November and March.
The point and figure chart has projected a target of $14.89 - $16.68.
Buying in at the $9.30 area, you could have trailed you stop continually up, locking in amazing profits, with one eye on the point and figure targets looking for negative price action that would give you a sign to close your position.
This chart is one to print out and stick on the wall and continually refer to it.
On the 22nd February we had obvious climatic action. The stock was up over 50% in two days before retracing on the 22nd.
The stock began to fall. On the 16th May we see our first sign of possible buying interest again with our preliminary support. Large Bar down (using the true range) closing in the middle with a very large spike in volume.
The stock can’t rally so we fall lower. A week later in the 23rd May we get more higher volume but the next day we see a great reaction.
The stock rallies and we see our first indication with a stronger rally then the previous three. This is called our automatic rally.
The stock falls and looks to retest the previous low, notice the volume is a lot lower when we retrace the $9.19 level once again. This is our secondary test.
The first phase of accumulation is complete, we have seen stopping action in the stock.
Phase B sees the stock rally and this time is able to make a higher high than the AR level. We upthrust that level and fall lower.
Phase C begins with a spring of the $9.19 level. The psychology around this is to retest the supply and gauge if weak hands are still holding on. Once they see the $9.19 level broken, we get as low as $8.14. The volume increases and we may have just seen the completion of transfer from weak hands to strong hands, as the stock rallies. Any one that bought at higher levels and has seen the stock test a level three times and that fail it, will panic and sell.
We retest the $9.19 level once again and notice the volume is a lot lower. Phase C is complete.
Over the next three months the stock rallies towards the top of the trading range, with continual tests.
We break through the creek and have our final retest - a back up to the creek, it is on low volume. Perfect retest.
Phase E or “mark up” occurs after this point and the stock begins to move higher on increased volume and demand.
If you had of placed a trade at the “test” area, with a stop under the spring, you would have seen a move of over 50% between November and March.
The point and figure chart has projected a target of $14.89 - $16.68.
Buying in at the $9.30 area, you could have trailed you stop continually up, locking in amazing profits, with one eye on the point and figure targets looking for negative price action that would give you a sign to close your position.
This chart is one to print out and stick on the wall and continually refer to it.