The GBp 608 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

However, analysts have revised slightly downward their earnings forecasts.

After several weeks of horizontal fluctuations within the mid-term range GBp 608 / 764, the stock is coming back close to the lower limit of the range.
Moving averages are almost flat and technical indicators illustrate the oversold situation. The GBp 632 area, which has just been tested, could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 706 short-term resistance and then to the trend-line in near the GBp 740.

So as to make the most of a potential technical rebound of Diploma, it seems opportune to open a long trade at current prices. A confirmation of this pattern would enable the security to reach the trendline in the GBp 740 area. Investors should not insist under GBp 632 and are better of placing a stop-loss order under this threshold.