WPP plc : A breakout as buying signal
May 03, 2013 at 04:12 am EDT
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 1,082 |
GBX 1,200 |
GBX 1,059.24 |
+10.91% |
---|
WPP shows a strong performance for several trading sessions, encouraging by upward EPS and sales revisions for the current fiscal year.
Graphically, the security is up 22% since the 1st January. It seems able to continue this uptrend supported by moving averages and will break out soon the GBp 1090 mid-term resistance. We anticipate a crossing of this level, given the upward orientation of the stock in the medium and long term. Above GBp 1090, a buy signal will be given.
Therefore, investors will benefit from the signal given by the crossing of the GBp 1090 resistance to take a long position in closing price. The objective will be set near GBp 1200. Once the position is opened, a stop loss should be fixed under effective entry point to guard against a trend reversal.
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