Stock: Afterpay Touch Group Ltd (APT ASX)
Life as a listed entity for Afterpay Touch Group Ltd (APT) can be separated into 4 distinct phases when we take a look at the chart. Phase 1 is the early days and can be defined as life contained under major resistance at $4.75. Next, we can see phase 2, this is the period of time spent above $4.75 but below major resistance at $6.00. Phase 3, the longest phase in length of time, can be defined as the period spent above $6.00 but contained under major resistance at $8.00. Worthy of note during phase 3 is the brief period of time where price dipped back under $6.00 for a final washout of the sellers before buyers stepped in to continue the push higher. This brings us to Phase 4, the current phase which has just begun, life above previous major resistance at $8.00. Having broken & held convincingly above the $8.00 level, price is now testing new all-time highs.
What Does Afterpay Do?
Afterpay Touch Group Ltd (APT) is the birth child of the 2017 merger between Afterpay (formerly AFY) & Touchcorp (formerly TCH). With the use of technology, the company has re-invented, revived & revolutionized the way in which a consumer can buy now and pay later.
In the not too distant past, under the previous method known as lay-by, goods would be held in-store by the shop until the purchaser had made the final installment payment. Good old fashioned delayed gratification! Not only was this method frustrating for the purchaser, it was costly & time-consuming for the stores who had to bear the cost to staff the lay-by counter, as well as the potential of getting caught holding old stock that would become difficult to re-sell in the event that the purchaser did not complete their payment under the lay-by agreement.
Enter Afterpay, and the modern day method consists of simply creating an account either online or via the app. The purchaser takes the goods home today and pays for them later in four equal fortnightly installments.
The Baron’s Brief – Official Summary
Shares in Afterpay Touch Group Ltd (APT) are firmly in The Baron’s crosshairs. Having broken through & held above major resistance at $8.00 the stock appears poised to continue higher from here. Should the opportunity present itself, a retest around $8.00 could be considered ideal buying territory if price comes back to cement this previous resistance level as new support before the next leg higher. A significant move & close back below $8.00 could void the current bullish view and would be cause to re-assess.
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Disclaimer: The information contained in this article has been prepared solely for the entertainment & educational purposes of the reader and does NOT constitute financial or investment advice. Any examples presented in this article are for illustration purposes only. No person, persons or organisation are authorised or permitted by the authors to take any action on the reliance of this information without first consulting an authorised, accredited financial planner or advisor. The authors are entitled, at their sole discretion, to hold positions in the above-mentioned stock/s. The authors accept no responsibility for the accuracy, completeness or timeliness of the information contained in this article. Disclosure – No positions are currently held in APT – ASX at the time of publishing this article (This is a disclosure and NOT A RECOMMENDATION).