“ALL has been one of our favourite stocks,” Michael said.
“But after taking profits on it 2 months ago, we have been keeping a close eye on it in order to get back in lower levels.
“When we look at the chart, it does appear as though we can be patient and pick up ALL at cheaper prices.
“ALL has recently broken what looks like a head and shoulders top (labelled with the S for each shoulder and the H for the head).
“This is pattern is telling us that ALL is being hit with more selling pressure than buying, and it means that we are likely to see the share price fall further.
“A potential target of the head and shoulders pattern indicates prices as low as $36. That region also happens to be the 38.2% Fibonacci retracement of the 2020 – 2021 rally. That is, good support is likely to exist at those prices.
“Whilst we cannot be too wedded to possible targets like this, momentum in ALL is clearly to the downside so it remains one to keep on the watchlist for now,” Michael concluded.
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