Australian Equities ARB

With US China trade tensions starting to thaw as negotiation get underway, there are a few Australian based stocks that have paid a heavy price because of their exposure in the US or China or both in the case of Bluescope Steel. ARB is one such company with exposure in the US.

ARB Corporation Limited (ARB) is engaged in the design, manufacture, distribution and sale of motor vehicle accessories and light metal engineering works. The Company is a manufacturer and distributor of four by four accessories. The Company's segments include Australia, USA, Thailand and Middle East & Europe. ARB offers various products, including air lockers and accessories; ARB compressors; protection equipment, canopies and utility lids, such as ascent canopy and classic canopy; roof racks and roof bars; safari snorkels; drawers and cargo barriers; batteries and battery solutions, and general accessories, such as tire accessories, and fuel and water tanks.

Taking a look at the Daily chart for ARB, the first observation is the downtrend in place from 2017. In January 2019 the long term down trend line was breached following the fake out low (FO). This type of price action often indicates a turning point in price direction. The support level of at $16.00 is currently providing resistance as part of the Cup and Handle pattern. This Cup and Handle pattern is often formed as a basing pattern following declines in price. The current breakout over resistance would target $18.24 with the STOP LOSS placed at $15.62.

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