The ALGO engine gave a buy signal for ANZ on February 7th at $28.80. During yesterday’s session, the stock traded up to $32.85; within 20 cents of the $33.03 high posted on August 4th, 2015.
Looking back at that price action, after ANZ traded over $33.00 in August of 2015, the share price fell to $26.40 during the next three weeks.
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That type of sell off is not our based case. However, with almost a $4.00 profit since the ALGO buy signal at $28.80, investors may want to consider taking profits or write covered calls on ANZ above $33.25.
The ALGO engine has given many profitable signals in the market, in general, and in the banking sector, specifically. We will look for the next buy signal to enter ANZ on the long side again.
Based on internal momentum indicators, $30.00 is the initial level of price support.
ANZ
