Shareholders in rail operator Aurizon have a lot to keep an eye on including major wage negotiations with its Queensland workforce; the bid for Aquila and negotiations for development and operation of the Moorebank terminal in Sydney.
I featured this stock a couple of weeks ago when it fell to test the support of its 200 day moving average. Since then it has avoided breaking through but has been unable to move convincingly clear of it. This price action has created a triangle pattern that might now be useful for traders if it’s broken in the near future.
- A break below the triangle support and 200 day moving average would be a sign of weakness with potential for a decline toward the 38.2% retracement level around $4.70
- A clear break above triangle resistance could see a rally to retest the underside of the old up trend line.