Ardent Leisure (ALG) operates a number of entertainment assets here and in the US. Locally they own Dreamworld on the Gold Coast and operate over 40 Main Event sites across the US. ALG is expected to benefit from the reopening of the economy here and in the States.
“Despite local lockdowns making that a risky proposition, ALG’s share price performance is telling us a different story. It is indicating to me that it wants to head higher fairly soon,” Michael confidently said.
“ALG struggled to make any progress during the last few months, but there’s now an interesting charting pattern starting to develop.
“After seeing its share price get smashed in April, it bounced back in May but then fell short of going to a new high.
“Instead, it has traded sideways with some clear resistance just above $1.
“By consolidating in this manner under the April high, it now looks like ALG is preparing itself to rally again.
“Any selling for now is clearly being met by equal buying. However, once that selling is out of the way (and we appear to be almost there), it will be able to head higher again,” Michael added.
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