Stock: Mayne Pharma Ltd (MYX ASX)
Since late 2017, trading in shares of Mayne Pharma Ltd (MYX ASX) has seen price contained between major support at $0.59 on the downside, and $0.79 major resistance on the upside. In a sign of increasing positive momentum, we can see that the 3 x recent attempts to the downside have all failed to reach the $0.59 level forming a series of higher lows in the process. A subsequent burst through & hold above the $0.79 level has occurred in recent days as the buyers have stepped in to make their mark. Given the impulsive & powerful nature of the recent breakout, we ideally want to see price now consolidate & hold above $0.79 to cement the level as new support before the next leg higher. When we zoom out to take a look at the longer term view on the weekly chart, we can further see the significance of the $0.59 support & $0.79 resistance levels to the far left of the chart. Having now powerfully broken up out of this range, a substantial move higher would not surprise, with previous resistance levels at $1.19 & $1.59 to be considered as likely targets.
What Does Mayne Pharma Do?
Mayne Pharma Group Limited (MYX) is in the pharmaceuticals business developing and manufacturing both branded and generic products which it distributes either directly or through distribution partners in countries including Australia, USA, Europe and Asia. Mayne Pharma currently has two drug development and manufacturing facilities located in Salisbury, Australia, and Greenville, NC, USA.
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The Baron’s Brief – Official Summary
The Baron loves it when a stock ‘shows it’s hand’ which is what Mayne Pharma has done as a result of the recent breakout. If price can now confirm the move up by consolidating & holding above the key level at $0.79, the Baron would be a happy buyer in anticipation of higher levels back up towards $1.19 & $1.59 previous resistance.
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Disclaimer: The information contained in this article has been prepared solely for the entertainment & educational purposes of the reader and does NOT constitute financial or investment advice. Any examples presented in this article are for illustration purposes only. No person, persons or organisation are authorised or permitted by the authors to take any action on the reliance of this information without first consulting an authorised, accredited financial planner or advisor. The authors are entitled, at their sole discretion, to hold positions in the above-mentioned stock/s. The authors accept no responsibility for the accuracy, completeness or timeliness of the information contained in this article. Disclosure – No positions are currently held in MYX – ASX at the time of publishing this article (This is a disclosure and NOT A RECOMMENDATION).