Travis Perkins plc : Wait the breakout of the resistance
Entry price | Target | Stop-loss | Potential |
---|
GBX 1,436 |
GBX 1,550 |
GBX 1,420 |
+7.94% |
---|
Travis Perkins, listed on the London Stock Exchange, shows a strong performance for several trading sessions.
From a fundamental viewpoint, the company is trading at a low level as shown by the ratio "enterprise value/revenue" at 0.77x. Furthermore, PER is moderate (estimated at 15.17x in 2013).
Since several months, the stock has initiated a sharp bullish trend mainly due to strong fundamentals. Prices have blocked several times on the GBp 1465 level. However, the uptrend could be continued, supported by the 20-day moving average, and return to its highest price levels.
Given these elements, most active investors could take a buy position and aim to cross the GBp 1465 resistance for a new bullish signal. The first target would be at Gbp 1550. A stop loss will be placed below the GBp 1374 pivot point, threshold that would invalidate the bullish strategy.
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