I've bought some ADO at 12c and below are my reasons for doing so.
Chart Patterns
The sp is starting to break the short term down trend line (lime green line) by today's high of 12.5c.
The next step is for the main downtrend line (yellow) to be broken.
Over the past few days I've noticed a small pennant pattern forming. Usually a pennant pattern is a trend continuation pattern but here I think it may be a trend reversal pattern. Today's price movement has brought the sp slightly upwards out of the pennant, a good sign.
Smart Money
It looks like the smart money were previously shorting this share and administering various tactics to cause the sp to travel downwards. At the moment it appears the short sales are reducing, time will tell. Their motive could be shifting from trying to sell to trying to buy.
There is an order that has been sitting in the system for 11.75c . It eats up any sell orders when there are no buy orders greater than 11.5 and the seller sells 'At Market', or the order gets matched to another cx trade. A bit of a Cookie Monster, "Om nom nom mmm me like ADO shares"! Because of it's presence I feel that the sp probably will not go under 11.5 from now on.
Candlesticks
There was a doji yesterday which indicates a fight between the bulls and bears. I've forgotten some of the candlestick names but let's call it a dragonfly. The bears have been ruling ADO these past few months but the bulls might be taking over.
Tea Leaves
Just kidding guys!
This is how I see the ADO TA at the moment. I'll still be watching to see if the chart and smart money behave.
I may be totally off so please make up your own mind before putting your Christmas budget down.
GLTAH!
