Stock: DuluxGroup Ltd (DLX ASX)
Having hit the boards post IPO at $2.50 in 2010, shares in DuluxGroup have tripled, rewarding holders with the holy grail of investing, a rising share price & a steadily growing dividend. The stellar run-up has shown signs of short-term exhaustion, with sellers stepping in to twice reject levels above $8.00 forming a double top in the process. Price has pulled back sharply off the second attempt at new highs and looks likely to drift lower from here. If the high of the key support zone fails at $7.26, a test of near-term support at $7.00 or the low of the range at $6.56 could be on the cards.
What Does Dulux Do?
When most people think of Dulux, they will simply think of paint, but DuluxGroup Limited (DLX) is a multi-faceted business. Its operations include manufacturing, marketing, selling, and distributing not only branded paint products but coatings, adhesives, garden care and other building products. The company sells to the residential home improvement, commercial and infrastructure markets across Australia, New Zealand, Papua New Guinea, China and South East Asia.
To access a list of company announcements, financial summary & dividend history – Click Here.
The Barons Brief – Official Summary
The recent double top in DuluxGroup is the sign of a stock that has come up for air after trying to make all-time highs and not a case for the bears. Should price continue to drift lower into the key support zone as anticipated, the Baron will be on watch for confirmation that price has bottomed with the view to getting long in line with the broader overall uptrend.
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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 DLX – ASX at the time of publishing this article (This is a disclosure and NOT A RECOMMENDATION).