Drax Group plc : The bullish trend is not over
By Sandra Pinturault
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 692 | GBX 0 | GBX 676.22 | -100% |
The economic and financial situation of the company is still strong. The group has a positive treasury for this year, sign of a healthy situation. Moreover analysts have largely revised upward their EPS estimates for 2013 and 2014.
Technically, the security shows a bullish configuration on all time scales. Prices are supported by increasing moving averages. In weekly data, 20-week moving average helps the stock to keep its uptrend.
Given these elements, most active investors could take a buying position at current price. The target price is GBp 718 resistance. A stop loss is placed below the GBp 686 support, threshold that would invalidate the bullish strategy.