LG shares gain the most in 18 months on Tuesday, company to invest more than $3 billion in OLED plant

LG Display Co Ltd (LPL) was reported to be considering an investment of as much as $3.6 billion in an OLED factory in an attempt to compete with Samsung in supplying iPhone screen technology. At present, Samsung is the sole supplier of OLED technology for Apple ahead of the launch of the latest iPhone during the fall.

Shares of LG Display registered their largest daily surge since November 24th 2015 during the first trading session of this week in New York. The stock went up 7.83% ($1.05) to $14.46, after touching an intraday high at $14.70, or a price level not seen since April 27th 2015 ($14.77). In the week ended on May 28th the shares of the technology provider added 1.51% to their market value compared to a week ago, which marked a second consecutive period of gains, but yet, it has been the smallest increase since the week ended on March 19th. The stock has extended its advance to 12.35% so far during the current month, following a 5.51% decrease in April. The latter has been the second drop in five months. For the entire past year, the shares of LG Display Co Ltd gained 23.08%.

The production lines at the facility are to be constructed in 2018, with LG Display shifting its priority on smart phones ahead of TV devices.

OLED technology allows for a superior contrast ratio and wider viewing angle in comparison with LCD screens, because of the directly emitted light by OLED pixels. What is more, OLED pixel colors are visualized correctly and without shifting, even as the viewing angle is changed to 90° from the normal.

According to CNN Money, the 32 analysts, offering 12-month forecasts regarding LG Display’s stock price, have a median target of $16.22, with a high estimate of $22.22 and a low estimate of $10.00. The median estimate is a 12.18% surge compared to the closing price of $14.46 on May 30th.

The same media also reported that 14 out of 34 surveyed investment analysts had rated LG Display’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the LG stock are presented as follows:

R1 – $14.50
R2 – $14.55
R3 (Range Resistance – Sell) – $14.59
R4 (Long Breakout) – $14.73
R5 (Breakout Target 1) – $14.89
R6 (Breakout Target 2) – $14.96

S1 – $14.42
S2 – $14.37
S3 (Range Support – Buy) – $14.33
S4 (Short Breakout) – $14.19
S5 (Breakout Target 1) – $14.03
S6 (Breakout Target 2) – $13.96

By using the traditional method of calculation, the weekly levels of importance for LG Display Co Ltd (LPL) are presented as follows:

Central Pivot Point – $13.23
R1 – $13.61
R2 – $13.80
R3 – $14.18
R4 – $14.55

S1 – $13.04
S2 – $12.66
S3 – $12.47
S4 – $12.27