You’re probably reviewed this stock before, but I’d thought I’d ask anyway for you to look this one over. What’s happening with this one? Do you see this as a good time to buy/sell/hold based on the technicals/fundamentals?
I this will be the third time that I have reviewed the charts for Manulife Financial Corp. (MFC TSX) but the first two occasions were in 2010 so this is a timely request. When I first analysed the shares they were trading for $18.02 on April 30, 2010. At the time it didn’t look like a buy and hold stock. It was advised that the best course was to confirm the bottom and avoid anticipating it. From there the stock gave up a lot of ground on investor concerns about the future of the company.
The second analysis was published on September 10, 2010 when the shares were trading for $13.00. The issue at the time was investor reaction to less than stellar performance and perhaps more selling to come. The stock retested $12.00 in mid October after which it began a climb to $19.00. With that background another run at the charts will provide a more current assessment of the opportunities and risks associated with MFC.
The three-year chart indicates that there is still a downtrend in place and that the evaluation of April 30, 2010 stands. MFC is not a buy and hold stock. You have to capture profits when available and avoid just being along for the ride. After the $19.00 high in February of 2011 the shares began an long retreat to the lows of $10.18 on December 19, 2011. From there it caught a bounce but has met resistance at $14.00
The six-month chart depicts a stock that is trading in an up channel with support along the 50-day moving average. A golden cross is on the verge of forming and the MACD and RSI indicate that an advance is shaping up. If MFC can get through $14.00 it can run to $16.00 without a lot of resistance.
The company is expected to report Q1 2012 on or about May 3 so watch the trend that develops as we get closer to that flex point. Trade this one for income.