Manufacturers Life was incorporated on June 23, 1887 in Canada. The Company is a provider of financial protection and wealth management products and services, including individual life insurance, group life and health insurance, long-term care insurance, pension products, annuities and mutual funds. These services are provided to individual and group customers in the United States, Canada and Asia. The Company also provides investment management services with respect to the Company’s general fund assets, segregated fund assets, mutual funds, and to institutional customers. The Company also offers reinsurance services, specializing in life retrocession and property and casualty reinsurance. (Source: Bigcharts)

The Stock Market Reveals a Golden Opportunity

Manulife Financial Corporation (MFC:NYSE) is another great find. Third momentum stock found this week is a charm. Ok, time to dive right into the good stuff. As you may recall from my earlier posts it is crucial to look at the overall picture first and then dissect the stock as to determine the proper timing of the trade.

In this two-year weekly chart of MFC I see an expansionary period that propelled the stock from $23 to $33/share. Then, sometime around March of ‘06 the stock rolled over into a consolidation phase. Each consolidation period I have marked with black lines. In the ones marked by horizontal lines, the security merely bounced up and down, but notice in the middle of the chart how the stock formed a common symmetrical triangle pattern. This type of basing is expected and healthy if the long-term upward trend is to remain in tact and found validated by the bulls who prop their stock to such lofty heights.

Well, towards the end of the chart you will notice that the stock is once again heading into an expansionary period. From the MACD and DMI indicators below, both signaling a buy within the past week, I have strong reason to believe that this is the right time to get in.

Our Recommendation: Buy shares of MFC at or near $34.77 and place your stop loss 5% below your purchase price.

Good Investing…