The Algo engine generated a sell signal for Ansell at the close of trade yesterday.
From a technical perspective, Ansell’s closing price of just under $23.00 is very close to the 50% retracement of the high of $25.65 traded on January 9th and the low price of $20.60 posted on February 20th.
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While we still like the longer-term growth prospects of the company, we are seeing signs that the general market may be rotating lower over the medium term.
As such, we believe its reasonable to expect that investors will be able to buy Ansell back below the $22.00 handle.
The current price of $23.35 offers a good opportunity to sell close-to-the-money call options to enhance portfolio returns.
