Funeral services
Comment of the Day

July 09 2012

Commentary by Eoin Treacy

Funeral services

Eoin Treacy's view I've seen an increasing number of baby boomer related articles of late and thought it may be an opportune time to review the funeral care sector. After all, as an increasing number of people enter old age, demand for end of life and funerals is likely to increase. (Also see Comment of the Day on May 2nd for the most recent mention of some funeral related shares.

In the UK Dignity Plc. has returned to test the region of the 200-day MA and the more than three-year succession of higher reaction lows. It will need to hold above 777p if the benefit of the doubt is to continue to be given to the upside.

US listed, Service Corp International and Carriage Services have both rallied impressively over the last couple of weeks to post new multi-year highs. Sustained breaks of their respective progressions of higher reaction lows would be required to question potential for additional upside.

Stewart Enterprises completed a six-month range in early June and continues to extend the breakout. The 2011 peak near $8.50 may pose a potential hurdle but a clear downward dynamic would now be required for it offer anything other than a temporary area of resistance.

Hillenbrand has returned to test the region of the lower side of the 30-month range and while oversold in the short-term, a break in the progression of lower rally highs will be needed to signal a return to demand dominance.

Australia listed Invocare remains in a relatively consistent three and a half year uptrend. It has returned to the region of the 200-day MA and the upper side of the 2011 range and posted a weekly upside key reversal three weeks ago. A sustained move below A$7.60 would now be required to question the consistency of the medium-term uptrend.

Back to top