Barratt Developments PLC : Encouraging technical patterns
Entry price | Target | Stop-loss | Potential |
---|
GBX 367.6 |
GBX 0 |
GBX 359 |
-100% |
---|
Barratt Developments' growth expectations offer an entry point after a 20% downward movement.
The company is characterized by great growth and strong profitability. Upward revisions have been made on sales and EPS on a two-year horizon (+20% for one year). Sales for the ongoing fiscal year should advance toward GBP 3.12 billion against GBP 2.6 billion in 2013, which means a progression of +19%.
Technically, the stock trades close to its short term level at GBp 343 that constitutes a support for the midterm and long term trend. Moreover, the upward trendline gives one more argument for the bullish movement towards GBp 386.5.
In sum, the current prices offer an interesting purchase level on Barratt Developments that has numerous positive indicators. The bullish target could be set on the short-term resistance at GBp 386.4 and by extension GBp 420. In order to protect the position, a stop-loss could be triggered if prices fall under the GBp 360.
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