What do you think of AGT?
Thanks for the assignment. This will be the fourth time that I examine the case for AGT Food and Ingredients Inc. (AGT TSX). The last was on July 3, 2013 when the company still traded under the ticker AGT but was called Alliance Grain Traders Inc. Since then the name was changed in October of 2014. The shares were trading for $15.20 and Ryan wanted some advice on how to manage his investment.
The research indicated that the downtrend that started in March of 2011 had been broken and that a golden cross had formed in June of 2013. It was noted that resistance came in near $16.00. Despite the resistance it was advised not to shoot the running horse.
Retrospectively that was the right call. Another inspection of AGT will inform my thoughts.
The three-year chart illustrates a stock that has been on a sweet run since June of 2013 when the golden cross formed. The retest of support at $25.00 in late September of 2015 set the stage for a new leg up that has taken AGT to its current trading range.
Make note of the buy signals generated by the MACD and the RSI as the stock bounced off $25.00.
The six-month chart pulls into focus the support along the 50-day average that has characterized the advance in 2016. AGT has to break above $40.00 with conviction to prove that it has more in the tank.
As with the last analysis conducted in 2013 I am not prepared to shoot this running horse. What is required from here on in is regular surveillance to ensure that the current advance can be sustained.
I will taking a break, returning on April 18, when I will audit the charts of AK Steel Holding Corp. (AKS NYSE) for Wayne.
Make it a profitable day and happy capitalism!