Carillion plc : The GBp 251.2 area for a technical rebound
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 255 | GBX 0 | GBX 247.8 | -100% |
The Price earning ratio (PER) is 7.42 and 7.52 times the two next years earnings.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 273.8, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 251.2 support in daily data. This level might stop the bearish trend in the short term.
The trading strategy can benefit from the proximity of the support currently tested in order to buy Carillion in a good timing. The objectives are situated at GBp 268 and GBp 278. Investors might place a stop loss order at GBp 247.8 in order to avoid important losses.