Home Headline News Meggitt PLC (MGGT:L) secures multi-million dollar contract with BAE Systems for innovative...

Meggitt PLC (MGGT:L) secures multi-million dollar contract with BAE Systems for innovative generator system

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Meggitt PLC (MGGT:L) secures multi-million dollar contract with BAE Systems for innovative generator system

Meggitt PLC, a leading international company specialising in high performance components and sub-systems for the aerospace, defence and selected energy markets, has signed a 3 year agreement with BAE Systems for an innovative generator system.

Meggitt’s solution combines two existing generators into a single generator, capable of fitting into a compressed space envelope. Its unique design creates space and weight savings and improves efficiency and performance.

Chris Allen, President of Meggitt’s Airframe Systems division, said: “We have worked closely with BAE Systems, helping them to develop a reliable, efficient system that reduces the number of critical parts, making assembly and maintenance much easier. This contract is testament to the ongoing relationship we have established with BAE Systems and the trust they place in Meggitt’s ability to both innovate and supply reliable technology.”

Overall, the bias in prices is: Upwards.

The projected upper bound is: 542.21.

The projected lower bound is: 507.31.

The projected closing price is: 524.76.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 22 black candles for a net of 3 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 80.1014. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 59.27. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 15 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 141.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 9 period(s) ago.

Rex Takasugi – TD Profile

MEGGITT PLC closed up 2.600 at 524.800. Volume was 31% below average (neutral) and Bollinger Bands were 20% narrower than normal.

Open High Low Close Volume___
527.400 532.000 522.800 524.800 1,188,091

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 516.56 520.26 519.06
Volatility: 14 21 29
Volume: 1,347,657 1,797,639 1,825,410

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

MEGGITT PLC gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
MEGGITT PLC is currently 1.1% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of MGGT.L at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on MGGT.L and have had this outlook for the last 20 periods.

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