Stock: Orora Lmited (ORA ASX)
In the first chart below we are taking the longest possible term view of Orora Ltd (ORA). Since listing on the ASX in December 2013 the stock has followed a near perfect stepping uptrend that has seen it climb from levels as low as $1.12 to levels above $3.51 at the time of writing. In the second chart below we narrow our view to take a look at the past two and half years of trading. Over this period we can see that the stock has run up off $2.09 support to initially test & fail above $2.73 resistance. From August 2016 to August 2017 we can then see a period of extended sideways consolidation that not only confirmed the sustainability of the move up from $2.09 but also firmly formed the $2.73 level as key long-term support in the process with a series of tests & rejections of this level across this time. Over this same period price was contained to the upside by major resistance at $3.18. When price broke through and took out the $3.18 resistance level in October 2017 it then came back to sit on top of and test this old resistance level making it new support in the process. Price now sits poised around the $3.51 near-term resistance level with $3.18 the line in the sand for the bulls to remain in control.
What Does Orora Do?
Orora Ltd (ORA) was separated from Amcor Ltd (AMC) in 2013 and was formed for the purposes of housing the Australasian division of the packaging distribution behemoths operations. You can check out The Baron’s Amcor analysis – Click Here.
To access a list of Orora Ltd announcements, financial summary & dividend history – Click Here.
The Baron’s Brief – Official Summary
The long-term sustained stepping uptrend that is evident in Orora Ltd (ORA) is as near to technically perfect as you could wish to see. Each move higher is subsequently confirmed by the period of time that price then spends consolidating on top of the previous high. This stepping action presents on the price chart as a smooth and structured movement and provides us with an added level of confidence that the moves higher in price can be sustained over time.
The near-term move above the $3.51 level yet to be confirmed. Any short-term price rotation back toward key long-term support at $3.18 would be welcomed by The Baron and considered to be an ideal area to get long and join the buyers in Orora.
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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 ORA – ASX at the time of publishing this article (This is a disclosure and NOT A RECOMMENDATION).