Breaking Out is a technical analysis-fuelled, short ‘n’ sharp take on chart-busting ASX stocks. Each week, Steve Collette – head of Collette Capital in Melbourne – narrows in on something that’s caught his eye.
Archer is one of a handful of micro-cap companies listed locally with credible expertise in the semiconductor industry.
Their announcements remain intriguing and somewhat cryptic, leaving room for them to capture the zeitgeist on the upside when the market is looking for exposure in this style.
The price action is no stranger to strong trends and significant moves in both directions.
To that end, Archer has recently shown signs of some renewed speculation.
After peaking at 60c in late March, the stock committed to a proper downtrend that saw it drop to below 20 cents by late September. However, it has since started to show signs of recovery, moving into modest uptrend with potential upside targets if interest in the sector continues.
BrainChip Holdings (ASX:BRN) and Strategic Elements (ASX:SOR) are two other names in the adjacent space that we keep an eye on to gauge speculative appetite.
For Archer, on the downside, the gap-fill back to 21c needs to hold.
Trading above 30c at the time of writing, the next significant resistance level is at the 200-day moving average of 34.5c.
Beyond this level, there is potential to 45c, and beyond that a retest of the 60c level seen earlier this year.
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