This post is for general information, and is not intended or suitable to be used to replace professional investment advice. I have no shares in Cochlear now.
The above chart is a weekly one spanning three years. It shows Multiple Moving Averages overlying candlesticks, and features Fibonacci retracements. It shows:
- The share-price has declined from a high of $82.87 on the 1st February 2013 in a down-trend that only ended in June and July of 2014 with crossing over of the short and medium-term averages.
- Since then the share price has lifted strongly in an impulsive move higher from $59.15 to $64.65.
- The short-term averages are rising as they diverge, but the medium-term averages have yet to move much. This could be the start of an uptrend. If so, the 50% Fibonacci retracement level target is at $67.50, and the 61.8% retracement level at $71.
Fundamental metrics (from Commsec)
- P/E ratio is 33.18
- Dividend yield = 4%, 30% franked, with pay-out ratio of 108%
- Debt/ Equity ratio = 47.8%
- Return on Equity + 37.1%
Possible Investment strategy
Buy at current or lower prices ($64-$65) with a stop/loss position at about $59.
Initial target at $70.