Stock: Australian Finance Group (AFG ASX)
Hitting the market in 2015 at $1.20, shares in Australian Finance Group (AFG ASX) proceeded to test levels as low as $0.90 in the year that followed. A break back above listing price then saw the stock run-up to tickle the $1.50 major resistance level on the upside, and three times test the $1.15 major support level on the downside. The next leg up saw the stock take out the $1.50 level and run on to test & reject all-time highs at $1.95. Sellers have since stepped in to crunch the stock off the highs, sending it freefalling back through $1.50 with ease. The most recent weeks trading has seen price form a bullish reversal, suggesting that the sellers have exhausted themselves for now and need to come up for air. Given the swift & severe nature of the recent sell-off, a short-term bounce back toward the $1.50 level seems likely.
What Does Australian Finance Group Do?
AFG was established in 1994 and has grown to become one of Australia’s largest mortgage broking groups and leaders in financial solutions. AFG began in Perth, Western Australia as an aggregator providing mortgage brokers with access to products and support. The company has now diversified well beyond mortgage aggregation and offers business finance, insurance products, and AFG-branded and securitised products throughout Australia.
To access a list of company announcements, financial summary & dividend history – Click Here.
The Baron’s Brief – Official Summary
The recent bullish reversal has formed in ‘no man’s land’ without touching $1.15 major support. The Baron anticipates a short-term bounce in price towards $1.50 that is likely to be met with rejuvenated sellers. The Baron is a buyer of AFG at $1.15 major support. A break of $1.15 and test of $0.90 could be considered to be ‘bargain bin’ territory for shares in AFG.
Want More Trade-Ideas Delivered To Your Inbox Each Week? – Get On The Free Mailing Here
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 AFG – ASX at the time of publishing this article (This is a disclosure and NOT A RECOMMENDATION).