Carillion plc’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

The value, currently oversold, evolves within a downtrend in the medium term. In the short term, this trend could be reversed as it approaches the GBp 245.4, level from which the bullish run could start wide-range movements. This support represents a buying opportunity in the context of a foreseeable technical rebound toward GBp 282.7 and by extension GBp 305.5.

Therefore, it seems opportune to take a long position on Carillion plc at current prices. A confirmation of this pattern would enable the security to reach the GBp 305.5 resistance, so a potential gain of 13 %. Investors should not insist below the GBp 245.4 and a stop-loss order should be placed under this threshold.