Kingsgate Near Key Support

This story features KINGSGATE CONSOLIDATED LIMITED. For more info SHARE ANALYSIS: KCN

The company is included in ALL-ORDS

By Rudi Filapek-Vandyck

Shares of Kingsgate Consolidated ((KCN)) ran into stiff resistance in September-October last year and shareholders have seen a lot of value disappearing since then. Coincidentally, the chart in Stock Analysis on the FNArena website clearly shows this is yet another example of the "Icarus signal" whereby the share price tries to move beyond the consensus price target and then receives a firm rejection.

In the case of Kingsgate, the punishment that followed was quite a severe one as the rejection occurred near $12 and the shares have fallen to $7.50 since.

The TechWizard reports this morning Kingsgate don't look so good from a technical perspective either. On a weekly basis, notes the Wizard, the shares have remained in a downtrend since the beginning of the calendar year. In addition, a bearish MACD indicator suggests more weakness should be expected.

The Wizard suggests investors should closely watch key support at $7.40 as a break below this price level will open the floodgates to $6.00.

The TechWizard is the pseudonym of Scott Morrison, whose experience in financial markets exceeds twenty years. Morrison operates his own website nowadays at www.techwizard.com.au. All views expressed are the TechWizard's, not FNArena's (see our disclaimer).

Technical limitations

If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

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