Gemfields PLC : The 20-day MA as argument
Entry price | Target | Stop-loss | Potential |
---|
GBX 62 |
GBX 68 |
GBX 57.8 |
+9.68% |
---|
Gemfields could reach its GBp 68 resistance after a test of the 20-day moving average.
The company shows strong fundamentals. Firstly, the high valuation of the group shows a great investors confidence in it because there are willing to pay a high price for the stock. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.
On the technical side, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped as long as prices are above the GBp 59.05 short term support. In this case, it should be a good entry point to buy the stock near the 20-day moving average and the short term support.
According to both technical and fundamental elements, it seems opportune to take a long position in the GBp 59/60 area. The bullish trend should allow the security to reach the GBp 68 resistance. A stop loss will be placed under the GBp 59.05 short term to protcet the position.
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