ABDP – AB Dynamics sets new all time high signal a time to buy

ABDP

UK AIM Stock AB Dynamics hit a new all time high at the end of last week which triggered my interest enough this week to buy this stock as a main share.

Why ABDP?

  • Weekly short term MACD nice under over 0 move
  • Weekly long term MACD stayed above 0 and moved positive
  • 200 day average has supported well
  • Month RSI has stayed above 68 since October 2015

With results due in less that a months time this share has just moved outside of a stunted range for the first time since February, could the chart be showing an indication of what is to come?

This share has been on my watch list now for sometime, its impressive when you look at how the monthly RSI has remained above 68 since October 2015 and I’ve spoken previously about how RSI 70 isn’t necessarily always oversold and about to go down. This share shows that very well.ABDP

Also I take a positive from how the monthly chart shows how well the 200 day moving average supported this share last month and it closed right on the line!

Then looking at the weekly chart above the short term MACD showed how it previously tried to move above 0 and failed 5 candles ago but then had another go 2 candles ago and left behind it a very nice little curve.

Finally the longer term MACD gave me the last signal I needed and at the end of last week the bar chart turned from red to green.

These are my reasons for going into this share as a swimmer. Please do your own research!