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2009

2008

There's Potential In Our Top Insurers

Sun Herald

Sunday April 6, 2008

Regina Meani. Regina Meani is a freelance consultant and author of Charting (Wrightbooks). The views expressed are those of the writer alone and investors should seek independent advice.

AMP and Tower Australia's share prices are on the upswing.

INSURING THE UPSIDE AMP is one of Australia's larger insurance providers and wealth managers. The drop through $8.90 in January completed a top and broke major support. The subsequent price slump found support and a bouncing point in the $6.75-80 area with the price rallying strongly through $8. The price may pause to consolidate its position and may churn between $8 and $8.50 to regain the momentum to break free and rise towards $9 and potentially higher towards $10. The risk would be a return of the bearish influence on a drop below $7.50.

BUILDING TOWERS A risk insurance provider with a superannuation investment arm, Tower's share price has been in a broadly swinging downward path from late 2006. The recent spike down to $1.86 in March pushed momentum to extreme levels and the price has responded with a strong bounce. The price has paused around the $2.30 barrier and may churn with support at $2.05 to gain the ability to push up through $2.50 and potentially $2.75 and possibly higher. The risk would be a drop back beneath $2.05.

© 2008 Sun Herald

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