“From the highs in 2020 to the lows in 2023, Magellan Financial (MFG) shares lost about 90% of their value,” Michael said.
“It was always going to take some time for the business to get back on track and for the share price to be ready to head higher again.
“Because of the stellar performance of the shares before COVID, it’s one many investors have been keen on getting back into in the hope that MFG could relive its former glory.
“We can’t say whether the share price can reach those dizzying heights again, but the share price chart at the very least is showing that it is likely to finally head higher again.
“MFG has formed a large base over the past two years.
“This followed on from that steep decline that started in 2020 when it was trading over $70. “It now appears to be nudging out of this base formation (see circled area on the chart).
“Due to the size of this base, any breakout from here could lead to a significant multi-month move.
“MFG is therefore a tentative buy here,” Michael said.
MFG GRAPH
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