I am teaching myself technical analysis and learning about the linear regression indicator. I worked through all stocks I hold and the Graincorp weekly offers the best looking chart to illustrate.
The idea is that once it hits the lower or upper channels (blue lines) it reverts to the mean (middle red line), indicating if it's overbought or oversold. Highlighted in yellow - early May 2022 price went outside the upper channel line (overbought) then reverted to the mean and in the last couple of weeks it went below the lower channel line (oversold), buyers have stepped in, so in theory price should start reverting to the mean - in time.
Of course anything can happen, the price could drop again indicating a sign of weakness and reversal of the bull run Graincorp has had since mid 2020.
NFA and DYOR but IMO Given the fundamentals on this stock I think we have a good chance of the price remaining in the channel.
(20min delay)