Australian pioneers

Stock Watch

by Regina Meani

Market analyst Regina Meani discusses Monash IVF Group (ASX:MVF).

Monash IVF Group has an amazing history, achieving the first IVF pregnancy in the world in 1973. The Group continues to achieve many Australian and world firsts following the work of their pioneers. The Group offers a complete range of specialist diagnostic obstetric and gynaecological ultrasound and fertility treatments.

The share price for the Monash IVF Group (ASX: MVF $1.185) has led a volatile path from its peak price at $2.38 in October 2016. Forming a top, the price fell into a downward path which saw a turning point at 35.5c in March 2020, just ahead of the Government lifting the ban on some elective surgeries, including IVF. The price pivoted and rallied strongly reaching close to 80c in the following month. The price paused in a combination of resistance and overheated momentum, falling back to find momentum support above 50c. The price tracked sideways with the action forming part of a broadening of a reversal phase.

Breaking away through the old trouble spot at 80c in April 2021, the price completed an important stage in the reversal process with the price pushing higher to tackle the downward trend line in August of that year. The price was unable to force an immediate change in trend but this finally occurred in December with the price reaching $1.095.

In clearing the downtrend line, the stock has confirmed a change in direction for the stock and a paradigm shift. In line with this the price has been trending up strongly from the August 2020 low at 50c, consolidating and building the new direction.

As the price continues its upward path it is encountering resistance in the $1.16-1.20 range and may need to pause ahead of breaking higher through $1.25 towards $1.40-50 and potentially to $1.75 and possibly higher. Near-term support is located at $1.14 and then lower around $1.10 with backup around $1.06.


Ends


Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.