Wow what a day, another great day of volatility to trade.
A few quick technical observations:
- The previous few weeks trading put A2 into a technical weekly and monthly uptrend, essentially ending the long term downtrend
- The monthly uptrend confirmation was not convincing (red flag). It was too close to being a double top, and I often see breakouts that don't end up following through just turn into bear flags. Swing traders should have been taking at least some profit here
- On balance, investors and traders got this one wrong. Nightmare for swing traders
- The risk of holding through a planned announcement has been shown today. The news risk is too significant for me, hence why I have been largely only day trading A2 (which occasional 2-3 day swings)
- In my opinion it is likely to keep bleeding, but hold previous lows (at least in the short term)
On a fundamental level, that MVM acquisition looks like bit of shambles. Not profitable until F26 and producing WMP instead of IMF in the short term?? An investment Theo and his team would have been proud of.