Following the completion of an unsecured note issue in March, Boral disappointed the market last month with lower earnings than expected and the stock was sold off heavily.
The announcement of the sale of the US Concrete and Quarries business yesterday appears to have returned a positive investor sentiment to the stock and the price has lifted from its sideways consolidation of the last week.
Technically, we see a breach of the down trending resistance line and the third session of strong buying pressure accompanied by solid volume.
The MACD has triggered a buy signal with a strong move up through the slow MACD line, as well as the CCI showing a bullish move from the oversold territory.
You could participate in the expected rally with a straight equity purchase, a Buy and Write strategy or a Long Call option.
An expected target for profit would seem to be around the $7.50 – $8.00 price level and protection should be placed under the recent and historical lows of $6.50.
If you have an interest in this potential trade, give the team a call on 1300 88 61 03