Hunting PLC : Benefit from the proximity of the support
By Sandra Pinturault
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 729.03 | GBX 0 | GBX 706.3 | -100% |
Fundamentaly, Hunting has undeniable qualities. Analysts following the security set an average target price at GBP 868, which corresponds to a potential increase of 18% compared to current prices.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 790, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 726 support in daily data, because it was 9% down in the last trading sessions. This level might stop the bearish trend in the short term.
Therefore, the proximity of the GBp 726 support is an opportunity to take a long position in Hunting. The first goal is a return in the GBp 793 resistance area. In fact, the security has to cross this area in order to re-establish a bullish trend in the mid term. A stop loss order can be placed under the support currently tested.