Persimmon Plc : Oversold condition on a technical support
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,826 | GBX 0 | GBX 1,790 | -100% |
In the recent months, the earnings estimates for the next year are regularly revised upward by analysts. Persimmon is currently paid 11.9 and 10.8 times the results.
In a technical point of view, the stock is back on a pertinent support and an upward trendline in the GBp 1800 area. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next GBp 1806 resistance.
So as to make the most of a potential technical rebound of Persimmon, it seems opportune to open a long position at current prices. A confirmation of this pattern would enable the security to reach the GBp 1970 and 2030 resistances. Investors should not insist under GBp 1806 and are better of placing a stop loss order under this threshold.