- The stock hit a low of 771£ in September last year and has been moving nearby that range till date.
- Such movement is usually a sign for an accumulation phase of a stock which means a big rally in the upcoming times.
- 1050£ is the current big challenge for the stock if it tries to move upwards.
Travis Perkins plc is a British builders’ merchant and home improvement retailer with head offices based in Northampton. It is listed on the London Stock Exchange, and is a constituent of the FTSE 250 Index. The company’s financials are average performing with good and bad quarters at equal intervals. Annually speaking, the company has been cash flow positive since past 2 years which is a good sign for the stock.
Technical analysis for the stock-
On a daily chart, the stock has broken its bearish momentum by braking a bearish range that was in place since mid february. Current levels for the stock look strong with 856£ acting as a strong support for the stock. The stock is expected to give slow but positive growth in the upcoming months.
October can be an important month for the stock as dividend decision is supposed to be released which is often a big mover for the stocks so one must keep an out for that too.
980£ levels look like a strong resistance as of now for the stock as of now.
A 1 hour chart shows the stock moving sideways after giving a goof upside recently. This is usually a cool down seen in every stock after a big move. Support levels look strong and the chances of a breakdown from here look low.
The stock can be expected to move sideways for now and see a slow price increase in the upcoming months. Current volumes do not look good enough for an instant breakout and thus one must wait patiently for a news or a big volumes surge.
Indicators currently give a mixed signal pointing towards slight negativity. Till the stock is trading in its current range, expecting a big move either side can be slightly wrong.
Analysts have predicted the stock to be trading around 970£ levels in the upcoming 5-6 months and if this is to come true, then we should expect a long range bound movement in the upcoming months. Technically too, the stock does not look very strong as of now.
Conclusion-
The stock is currently stuck in a zone. Current targets in case of a price increase can be 890£ followed by 905£. Only if the stock shows good volumes beyond these targets, one can enter long with a bigger target of around 940£ and 970£ too.
Major technical levels for the stock-
Major support levels- 856£ followed by 830£.
Major resistance levels- 890£ followed by 910£.
