Fisher & Paykel Healthcare shares (ASX: FPH) notched up another solid week, adding 2.69% to A$36.31, and having made a new all-time-high ahead of the weekend break. For a stock that has spent the past three months grinding higher, the new high at A$36.59 will be a key level to watch as this week’s trading unfolds.
Having bounced 36.5% off the May low, this latest break is a potentially watershed moment for holders who had seen FPH consolidate in a tight range for much of the previous 18 months.
With the company offering revenue guidance for HY27 of NZ$1.24bn, and full year NPAT of NZ$542.5bn at the mid-point, there was plenty for bulls to rally behind. Expected growth of 14% in revenue, and 24% in HY NPAT, alongside an improvement in gross margins helped push the stock to new highs.
From a technical perspective, the setup is well-ordered, with the share price trading above both its 50 day, and 200 day simple moving averages. The latest push also takes the stock above the upper Bollinger Band, consistent with an orderly momentum extension in a trending name rather than a volatility-driven spike. The trend-strength reading remains elevated, pointing to a strong underlying move, though it has been easing from its peak, as accumulation continued without a huge blowout.
Whilst momentum is clearly with the bulls, there is now plenty priced in after a 36% bounce in three months. With FPH shares now in a period of price discovery, periods of heightened volatility can be expected, with markets looking to test which levels the stock reacts to. A fundamental boost into a technically bullish setup provides a solid platform, but momentum can be a fickle beast. One to watch, with tests of the previous highs in the mid A$35 potentially useful as a confirmation signal.
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