AUZ has been trading in a parallel descending trend since November last year. If the 5.5c support of the parallel descending trend breaks, we are estimated to test the huge gap on the charts in October last year between 3c and 3.7c. It has been falling today on announcement of debt convertibles from Bergen which is negative
Comment:
Bearish development continues with very high volume. Expected to close gap at 3.4c and then bounce back up to re-test the channel.
News was announced today regarding a 12m debt raise given at a 10% discount in multiple tranches by Bergen. Share price closed at 5.3c. This means that the share price has closed below the channel shown above. The volume was very high and the selling pressure at close was very strong.
I am not sure why though every share associated with Bergen takes a huge share price hit. Almost as if Bergen is shorting the company. This may be false and is just my opinion.
Regardless, the break of the channel is not to be taken lightly and I anticipate a drop to 3c to close the gap. This is unfortunate and condolences to all shareholders.