Amcor is a global packaging company specialising in both flexibles and rigid packaging. The share price has been under pressure this year due to rising costs and weaker demand for their products.

“At their recent full year result, their earnings and guidance were generally softer than what most analysts were expecting,” Michael said.

“As a result, the stock broke under key support and was sold down on high volume (circled). “However, the next day, it jumped back above that old support level on even higher volume. “There is a high chance that the breakdown under support was a “false break” and it implies that investors who had held onto a losing stock for so long had finally given up, only for the “smarter” investors to use that liquidity to scoop it up the next day because the prior day’s results were as bad as it was going to get.

“This should now be the start of a new uptrend and current levels are a buying opportunity,” Michael said.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.