Persimmon Plc : Benefit from the uptrend
By Josselin Giraud
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 774.5 | GBX 0 | GBX 731 | -100% |
The company shows strong fundamentals. Firstly, the high valuation of the group shows a great investors confidence in it because there are ready to pay a high price for the stock. Moreover, the Thomson Reuters consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.
Technical patterns are in the green : prices are up for several months. The trend should continue in the coming trading sessions. The 20-day moving average should help to reach the GBp 823 long term resistance.
Thanks to these good indicators, it seems relevant to take a long position in Persimmon at the current price. The target price is the GBp 823 resistance. A stop loss will be fixed under the GBp 761 because a breakdown of this level would damage technical pattern.