Shares of Medibank Private have reached a new all-time high of $3.38 as the Federal Government approved a 3.95% increase in fees for calendar year 2018.
The news was a shot-in-arm for the private insurance provider whose shares have gained over 6.5% in the last 7 trading sessions.
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Since our last ALGO buy signal in May at $2.73, the stock has picked up almost 24%. MPL shares are currently trading at 21X earnings on a 3.6% yield
Internal momentum indicators have now reached overbought territory and we suggest exiting long positions at, or near, the $3.30 level.
We will look for a pullback in MPL to reenter long positions and update accordingly.
MediBank Private
