“Shares in A2M have been decimated in the past two years as sales to China fell apart,” Michael said.
“Despite this, we’re now seeing some initial signs on the chart that the share price may have bottomed out.
“The first point of note is the fact that A2M low for the year occurred in May this year and has been heading higher since then.
“This is despite the broader market heading backwards in this time.
“The rallies since the May low have also been strong and is evident of some solid buying. “The other point to note is that the shares are trading back above the 200-day moving average (blue line).
“This is important because it is indicative on a stock that is getting back into a longer-term uptrend.
“Nothing good happens under the 200-day moving average, so seeing it back above that level is very encouraging.
“Sentiment around A2M is still negative, but it is climbing the wall of worry here and it may well surprise over the next 12 months,” Michael said.
The a2 Milk Company (A2M)
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