In our “HOT” stock article today, Michael Gable, Managing Director of Fairmont Equities, says that for those looking at a sign that AMP’s share price is ready to recover, a break above $1.90 could lead to a substantial recovery in its share price.

AMP has been a very disappointing investment for those who participated in the float or had bought it at any time before COVID.

“It is a company that has been touted as a recovery story on numerous occasions throughout the years but each time the dream has fallen flat,” says Michael.

“Recent results, however, have shown signs of improvement in the business but could this finally be the green shoots that investors are looking for?

“Whilst it is hard to pinpoint whether the market will price in a recovery just looking at the fundamentals, the charts are showing that there have been some funds flowing into the stock and we can see some key levels that need to be overcome to trigger a broader rally.

“When we look at the chart, we can see that since 2020, AMP appears to have formed a very large base where the upper level of resistance is near $1.90.

“It has tested that on a number of occasions and recent buying support has seen the stock once again push these boundaries.

“For those looking at a sign that the share price is ready to recover, we believe that a break above $1.90 could lead to a substantial recovery in the share price.

“That is, a break above $1.90 is the buy signal to watch out for,” Michael says.