Would like your take on Sun Life Financial Inc. vs Manulife Financial Corp.
Andy in Montreal
Thanks for the assignment. I will inspect the charts for Sun Life Financial Inc. (SLF TSX) today and Manulife Financial Corp. (MFC TSX) next time. This will be the third time since 2012 that I run the charts for SLF. The last time was on March 28, 2014 on a request from Cam. The shares were trading for $38.39 and he wanted to know if the shares could run to $50.00 if interest rates started to rise.
The research conducted pointed to an uptrend line that had been tested but not breached and resistance at $40.00. The MACD and the RSI were generating buy and sell signals along the advance for those that wanted to ride some of the swings. It was advised not to shoot the running horse and hold the stock.
At this point that appears to have been the right call. SLF moved through resistance at $40.00 in April and is now testing resistance at $43.00. Another study of the charts will identify the patterns that will form the basis of my evaluation.
The three-year chart reveals the breather that the uptrend took starting in December of 2014 and the emergence of an ascending triangle by May. The ascending triangle was resolved in May of 2015 as a new up leg has taken hold. What is also evident is the bullish cross over that surfaced in early June. Finally make note of the bounce off the 50-day moving average in early July.
The six-month chart reveals the resistance at $43.00 that has to be overcome if we are to expect the advance to continue. There is an uptrend line that formed in late April which has provided support for the move up as well as the support along the 50-day moving average.
SLF reported a number of acquisitions in 2015 including The Bentall Kennedy Group and Prime Advisors. These deals in addition to growth platforms in Asia and the the potential for rising interest rates make this stock attractive.
Next time I will conclude the assignment with an inspection of the charts for Manulife Financial Corp. (MFC TSX).
Make it a profitable day and happy capitalism!