After the Rightmove HPI report showed housing prices in UK climbed 1.6% in March, the York based house builder reflected significant losses and came close to the lower bound of its rising wedge.

With 100% of sales in the United Kingdom, the company reveals healthy financials. On the FY 2013 annual report, Persimmon released better-than-expected figures in all gross lines and significant improvements have been made in comparison to the prior fiscal year. Indeed, sales grew 21% allowing the group to make more than £300 million of EBITDA, but foremost enhancements were reflected on earnings that came up to £257 million while only £170 million reached in 2013. Helped by incredible results and an organic growth, analysts polled by Thomson-Reuters agree and keep a positive outlook on the residence developer, thus its forecasts for EPS and Revenues have been upwardly revised for the 2014 year. They actually reckon earnings of £1.12 per share and revenues at £2,4B for the current period.

Technically, the stock could resume its long term bullish trend as it tests the GBp 1250 support line and the lower bound of the rising wedge. These two parameters should boost prices toward higher places with accelerated pace as in the past. During the upturn process, the 20-week moving average will be a key reference point as it support prices and avoid shares to hollow by means of wider retracements.

Hence, long position could be opened at current prices, seeking for the GBp 1471 resistance. The stop-loss order could be set below the support of GBp 1250. It is important to remark that a Spin Off on Persimmon shares will be applied by June 5, 2014.