Technical analysis
Magna International Inc. is a Canadian mobility technology company for automotive manufacturers. It is one of the largest companies in Canada and was recognized in 2020 Forbes Global 2000.
#MGA after starting a bearish trend in June 2021, we believe the stock is consolidating between $ 79.00 - $ 75.00 to then gradually reversing to the upside. Positive catalyst could be the imminent break of the bearish trendline.
The stock is expected to break soon the downtrend line that began in June 2021
RSI is showing a positive divergence with the price: the new price lows were not followed by new lows in the RSI
MACD in positive divergence with the price: from the end of July the indicator has recovered strongly from a price that recorded new lows. Indicator that has also recently crossed to the upside
The price rebounded from the intermediate support at $ 72.30
To conclude, we believe that the recent fluctuations are anticipating a "bottoming" phase that will lead the stock to recover previous levels.
The oscillators MACD and RSI are diverging from the price together with a possibile break of the bearish trendline we are in favour of short-term upside.
Further confirmation will come when the price will mange to close above the 50MA.
Entry range $ 79.00 - $81.00*
Target 1 $ 94.00
Target 2 $ 104.00
OTB Global Investments
28 September 2021
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