Graincorp (GNC) is an edible grains business based on the Australian east coast. Michael Gable says it’s in buy territory and here’s why.

“Over time, Graincorp has created a global supply chain with infrastructure assets that store, process and facilitate the transportation of grains and edible oils,” Michael explained.

“Graincorp had been trending higher during 2021 before peaking at the start of January.

“After falling away sharply, it then recovered to make a new high in early March.

“Although it didn’t power ahead straight away, the chart was telling us that there was still some upside potential.

“This is because it traded sideways for a while instead of going backwards.

“This is where the stock was able to absorb any selling with equal buying.

“It then gapped up last week on strong volume and this is therefore a sign that the selling has died down and that the buyers are back in control.

“It is now, therefore, resuming the uptrend.

“This means that further upside is now expected in Graincorp shares,” he said.

Graincorp Limited (GNC)

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.