Taylor Wimpey plc : 20-day moving average in support
Entry price | Target | Stop-loss | Potential |
---|
GBX 94.05 |
GBX 105 |
GBX 92.86 |
+11.64% |
---|
Taylor Wimpey which is part of British leaders housebuilding industry, could breakout the GBp 96.55 resistance in the short term.
Regarding the fundamentals, the group reported a 44% increase in operating profit and a 124% increase in adjusted EPS to GBp 4.7 for the year 2012. Thomson Reuters analysts regularly revised upward their EPS estimates in recent months.
The security is in an upward trend for several months. A running out of steam is occurred with the contact of GBp 96.55 but a new test of this level should come in the coming trading sessions. This movement is supported by the 20-day moving average and may stop any bearish inclinations. Exceeding the GBp 96.55 resistance will indicate a buy signal with a target price in the area of GBp 105.
Taking into account all these elements, investors could buy the stock if crossing the Gbp 96.55 level. The target price is set close to Gbp 105. A stop loss will be fixed below the GBp 93.5 short term pivot point, threshold that would invalidate the strategy.
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