Ausgroup

Commentary:

Ausgroup had recently been trading within the intermediate bearish trend channel for the past 5 months. 2 weeks ago it managed to break out from this persistent bearish band with some strong vol white candlestick day. It has since been trading in this new bullish trend channel. MA5 has also cut above MA 20 and MA 50 from below, while current price is now lying on MA50 support and short term bullish trend channel support line.

Strategy:

As the recent short-term bullish price actions have been ascending at a somewhat steep angle (~55degree) as compare to the 5 month intermediate bearish trend which descend at a gentler level (~30 degree), there is a high probability its momentum might face exhaustion soon and price is likely to take a breather in the very near future. A fall in price below the short-term bullish trendline support would signal a pause to the recent run up. Existing short-term traders can therefore consider taking some profit off the table once that happen.