A recession proof industry? Chart review of Invocare (IVC)

I wish I had invested in ASX listed funeral industry stock Invocare, along with Healthcare stock CSL prior to the GFC, since both have still continued to trend upwards, when nearly every other stock dived.

Both are still worth including in the portfolios of retail investors particularly taking into account the fact that their businesses are relatively recession proof.

 

IVC Mnthly Feb

Monthly chart of Invocare

Since 29/11/2017 the share price of Invocare has come off a high of $18.15 to dip below $16. This weakening of the share-price has coincided with the listing in November of a competing funeral business, Propel Funeral Partners.

At $2.70 Propel, already an established player in the Death Care segment, focusing more on regional funeral parlors, would seem to offer investors more upside potential than Invocare, whose expansion into the US has stalled, and is finding limited growth opportunities in Australia, New Zealand and Singapore.

 

IVC Dy Feb18

Daily chart of Invocare

The above daily chart shows the following technical features suggestive of a possible rebound in the near future.

  • At present the price action has entered into a triangular consolidation pattern from which it will soon break-out. It is not possible however, to forecast its direction.
  • There has been a spike in turn-over volume.
  • The Parabolic Indicator has come off a downward trajectory to be rising.
  • The RSI has come off a sub 30 oversold level to be now trending upwards.
  • Included on the chart is a trace of the 120 period moving average. This is a guide as to what the market deems a fair average price for the shares. Currently the shares are trading at a discount below this average. Desirably buyers for the longer term will wait until this is no longer the case, and both are trending upwards.

Disclaimer

This post considers Technical Analysis issues only. Readers should not rely on the opinions expressed without seeking qualified investment advice. I do not at present own any shares in Invocare.



Categories: Chart Review

Tags: , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: