I'll post the chart later tonight but at this stage the existing Fibonnaci set would seem to infer a support at 85c. Exactly.
This is following the complete failure of the earlier major support at exactly $1.30 where the stock didn't even hesitate.
Wonder what this all means for AWB's banking covenants. One would presume that it will play havoc with any facilities they have for their financing operations including crop liens, and general finance.
I understand that until about a year ago AWB had a book of around $1 billion out and that they have been key players (with Elders) in the 'lender of last resort' end of the market....
Floods at one end of the country, a permenant drought (possibly - according to the Weather Bureau as of yesterday) in the South - all in all things dont look all that rosey?
No position at this stage (should have been short all the way...)
AWB Price at posting:
91.8¢ Sentiment: None Disclosure: Not Held
