What is Happening to Paragon Care LTD’s Share Price Lately?

What Does Paragon Care Ltd Do?

Paragon Care [ASX:PGC] is a leading distributor and manufacturer supplying medical equipment to hospitals, medical centres and aged care facilities.

Melbourne based Paragon Care has progressively acquired seven companies over the past four years. Each one was a leading provider of innovative healthcare and medical equipment, giving Paragon a one stop provider advantage when it comes to hospital and aged care contracts. All of their equipment is backed by servicing and maintenance plans from experienced technicians, further promoting hospital loyalty.

What does the chart look like?

I always find it helpful to bring up a chart. Here’s the daily chart of PGC:

Paragon Care Share Price Chart

Source: STEX

After breaking out in early January, PGC has moved sideways, testing a level during the month of February.

Are PGC shares a buy?

When one considers the general ageing of the population, we can be certain that opportunities in health and aged care will present themselves in the years ahead, and Paragon is in good position to secure a significant proportion of the investment allocated to fitting out these hospitals and centres with equipment and supplies.

However, don’t get lost in the story; trade the chart, not the narrative. The moves up have been on strong volume. Price declines have taken place on much lower volume. This is bullish, it shows more buyers than sellers of the stock. And the stock is in a strong sector. You will know all of that of course, if you have the ability to read a chart. Go here to find out how.
Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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