Telecom Plus Plc : Double bottom on the GBp 815
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 823.5 | GBX 0 | GBX 808 | -100% |
In the recent months, the earnings estimates for the next year have been regularly revised upward by analysts.
Technically, the security is in a negative configuration in the short term as the bearish trend of the 20-day moving average, currently at GBp 894.7, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 815.5 support in daily data and forming a double-bottom. This level might stop the bearish trend in the short term.
Considering technical and fundamental elements, it seems to be an appropriate timing to immediately open a long trade in Telecom plus in order to benefit from the GBp 815.5 support area.
A first target price will be the GBp 881 resistance, ie a potential of 7%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of GBp 881 would validate a bullish trend in order to aim a higher target price.