Persimmon Plc : Healthy bullish trend
By Camille Chretien
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,223 | GBX 0 | GBX 1,190 | -100% |
The security has benefited and continue to benefit from upward revisions in earning per share estimates for 2014 (almost +30% since January). Further, the annual growth rate is estimated above 10% for the three coming years.
Graphically, the trend is bullish in the medium and long term. The stock is supported by the 20-week moving average and a bullish trend line. Thus, a long strategy can be implemented, in order to benefit from the uptrend. The timing seems perfect thanks to the proximity of the GBp 1213 short-term support and the 50-day moving average.
A long position can be opened at the current price in order to aim GBp 1305. A stop loss must be placed below the GBp 1213 short term support.