Admiral Group plc : Benefit from the uptrend
By Sébastien Gatel
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,657 | GBX 1,850 | GBX 1,600 | +11.65% |
The company's fundamentals remain very strong as suggested by the good Surperformance ratings. For 2015, revenues are estimated at half a billion pounds, up nearly 12%. Analysts following the stock Admiral Group, also revised upward their earnings forecasts for 2015 and 2016.
Technically, the stock shows a bullish configuration on all time scales. The prices are supported by the positive moving averages trend and are currently around the resistance of GBp 1662. In weekly data, well-supported by the 20 periods moving average, the share is in a current bullish momentum.
Investors can therefore open a long position after a breakout of the GBp 1662 resistance. The first objective will be fixed at the weekly resistance of the GBp 1751. By extension, a breakout of the ascending trendline will comfort our scenario in direction of new highs to GBp 1850 (potential gain of 10%). A stop loss is however recommended near the GBp 1600, which would invalidate this bullish strategy.