Meggitt: Multiple technical triggers target 520p plus

1 mins. to read
Meggitt: Multiple technical triggers target 520p plus

The only negative in what is apparently a glorious bull situation at Meggitt (MGGT) is whether it’s better to travel than arrive?

Meggit’s focus on aerospace and defence is certainly flavour of the month as far as the stock market is concerned, especially given the way we are in the run up to hearing about President Donald Trump’s plans on defence spending, as well as infrastructure as a whole. This sets the scene on the recent constructive share price pattern on the daily chart of Meggitt. Even though the stock is well off the lows of last year near 350p, it is perhaps not quite as supercharged as it could be. The obvious thing to build the shares up from present levels is the aftermath of the latest trading update, where revenue growth expectations have been lifted, along with the full year dividend. 

From a technical perspective, one would be celebrating the latest gap higher through the 50 day and 200 day moving averages, the island reversal formation and bullish divergence in the RSI window after the February bear trap rebound. On this basis, one would be reasonably confident to target the top of the 2016 price channel at 520p over the next 1-2 months while there is no break back below the 50 day moving average at 438p.

Share price behaviour of aeropsace engineers, Meggitt (MGGT)

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