November 17 2004 Australasian Investment Review (AIR) The share...

November 17 2004
Australasian Investment Review (AIR)

The share price of local biotech hopeful Agenix (AGX) has covered almost every spot between $0.49 and $1.03 over the past twelve months, so investors should be warned this one is certainly not for the faint hearted.

Having said that, Southern Cross's Stuart Roberts still sticks to his view that the biotech bull has arrived and that should imply trading opportunities galore.

Centec Securities, through its newsletter Shareform, believes there's an opportunity building in Agenix.

Looking at the stock from a technical analysis point of view, they comment it appears that the stock has finally found some reasonable support around the 50c area following "the sharp rejection at the $1.00 mark".

The September/November period saw three consecutive higher lows with a final breakout above the 0.58c/0.60c resistance level, meaning, in technical analysis speak "a triangle reversal formation has now been completed".

Also, the sudden increase in volume suggests to Centec that the "smart money" is taking a position before the possible upswing, while other indicators signal a bullish bias.

The analysts expect an increase in volatility in AGX and the 58c support line could be retested before further advances. They suggest stops around the $0.53 level.

from:

http://www.aireview.com/index.php?act=view&catid=1&id=973