Technical outlook – Many chartists, traders/investors, often look for many patterns and signals to assess the trends in various stocks. Additionally, we all use charts and other tools to identify patterns that can be used as a basis for investment decisions. There are many different forms of technical analysis: Some rely on chart patterns, others use technical indicators, and most use a combination of techniques and fundamentals.
Viewing the potential strength to the daily pattern of Mayne Pharma Group Limited (MYX), the two technical indicators, the Relative Strength Index (RSI) and the moving average convergence divergence (MACD) are slowly forging a potential bullish breakout, mainly assessed from the RSI.
View these indicators; the RSI aims to indicate whether a market is considered to be ‘overbought or oversold’ about recent price levels. The MACD is primarily used to gauge the strength of stock price movement. It does this by measuring the divergence of two exponential moving averages (EMAs), commonly a 12-period EMA and a 26-period EMA.
It is envisaged that once the MACD breaks above the 0.00 axis should ignite renewed momentum for this share price and expected to encounter renewed demand to strengthen prices towards a foreseeable target at $0.64. Reassess from there.
Company Overview – Mayne Pharma Group Limited (MYX) is a pharmaceutical company that develops and manufactures branded and generic products, which it distributes directly or through distribution partners in Australia, USA, Europe and Asia. Mayne Pharma has two drug development and manufacturing facilities based in Salisbury, Australia and Greenville, NC, USA. Former Names: Halcygen Pharmaceuticals Limited (HGN), 18/11/2010.