Rail operator, Aurizon Holdings was in the news last week announcing it has joined Chinese company Baosteel in a bid for Aquila Resources. Its involvement is aimed at securing the right to develop and operate the railway and port infrastructure required for Aquila’s West Pilbara iron ore project to proceed. In the meantime, Aurizon also announced yesterday that it has applied to terminate 14 Queensland Enterprise Agreements with its workforce as it seeks to improve efficiency and reduce costs in existing operations.
With all this action, the price charts might provide some useful benchmarks for traders and investors looking to finesse their reactions to what’s going on in with this company
- On the immediate horizon, price has fallen to its 200 day moving average. A clear break below this would be a sign of further weakness
- Last week’s takeover bid saw price break significant trend line support around $5.04. This area and the gap just above it may now act as overhead resistance if things go the other way and there is a bounce off the 200 day moving average