Astec designs, engineers, manufactures, and markets equipment and components for the road building, aggregate processing, geothermal, water, oil and gas, and wood processing industries in the United States and internationally. They manufacture more than 220 products. Their latest interim results for the six months ending June 2018 reported a 9.7% decrease in net sales and they reported a loss for their second quarter.

The weekly graph implies:

  • The share is nicely oversold and the first sign of strength will be visible above line A ($49-25).
  • The spike in volume along with rise in the share price implies that this might be a solid rally.
  • $45-48 is clearly a strong support which was also tested and remained during August 2017.
  • The share changed the 40 week moving average ($49-25) into a resistance which is seen as negative.
  • For traders – Buy or consider a long above $50-05 but use $45-48 as stop loss to protect capital. The possible targets towards the top are $50-42, $51-12, $52-47, $53-46, $54-77, $55-41 and $56-98.
  • For medium to long term investors – Do the same as the traders above.

Frans & Christelle de Klerk are independent technical analysts. Christelle is also a registered broker. Visit www.fransdeklerk.com and www.chris-tell.com for more information.