GBp 627 : A pertinent support
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
£639.5 | £0 | £617 | -100% |
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 627 area should stop this trend and allow a technical rebound towards GBp 667.5. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
Therefore, the proximity of the GBp 627 support is an opportunity to take a long position in Hiscox. The first goal is a return in the GBp 667.5 resistance area, that is a potential of 4.8 %. In fact, the security has to cross this area in order to re-establish a bullish trend in the mid-term. A stop loss order can be placed under the support currently tested.