Magellan Midstream Partners, L.P. : The bullish trend should continue
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$61 | $0 | $58.9 | -100% |
The company shows strong fundamentals. Firstly, the high valuation of the group shows a great investors confidence in it because there are willing to pay a high price for the stock. Moreover, the consensus revised strongly upward EPS estimates for this year and that let see a great potential for the security on the stock market.
Technically, the security shows a bullish configuration on all time scales. Prices are supported by increasing moving averages and the breakout of a bullish trend-line. In weekly data, 20-week moving average helps the stock to keep its uptrend.
Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to take a long position at the current price in order to benefit from a continuation of the trend. The first target price is the USD 65.15 resistance. A breakout of this level will be a new bullish signal for higher target price (the weekly resistance at USD 69.35). A stop loss will be placed under the USD 59, corresponding to the 20-day moving average.