In terms of price performance this stock has done relatively well in the last year most notably in the second half of 2016 where a steady uptrend has developed in guiding the price off yearly lows that occurred sometime back.
Nonetheless the uptrend that had been supporting the steadiness in price of late has broken to the downside in dramatic fashion leaving trend followers unattracted in taking a position. The positive gradient of both the 50 day & 200 day moving average did add an element of bullism to this stock but as a result of price falling below the 50, this would need to be re-assessed.
However all is not lost in that price found support along the lateral level of $54 which is defined as a medium term area. The bounce that materialised was hardly spectacular but the fact it lifted fractionally off a round number such as this one shows there are buyers around.
The most likely outcome we should see happening over the next few months will be a consolidation in price given the P/E ratio has quickened in a short period of time from just under 15 to over 30. This kind of valuation would support a need for a pullback in the near term and yesterday's price action signals the beginning of the process.
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