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Adviser Tip: AGL Short

As you can see from the above chart, AGL has been tracking in a downtrend since its poor report on the thirteenth of August. Indeed, AGL has largely been trading in a longer-term downtrend for since April 2017.

AGL recently rallied from its local lows at roughly $13.80 to meet the downtrend line, creating a miner counter trend. This formed a Pennant triangle pattern. Today shows AGL breaking the pennant pattern in the direction of the underlying downtrend. It clearly bounced from the downtrend line, and is moving lower with plenty of selling pressure today.

Ultimately, this provides entry signals for a bearish trade on AGL, with the short-term target being the local lows (now support) at roughly $13.80. You could trade a Mini Short, or a Put option on AGL.

If you would like to learn more about technical analysis, you can read a recent article here.

This Thursday night we will be running a special webcast on this topic, specifically focused on teaching you how to pick direction using the same methods we use, click here to register your place.

Karo Cornips

Joining the team at TradersCircle in 2011, Karo has extensive experience in both investing education and derivatives trading.

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