Capita plc : Rebounding after a double bottom
By Alexis Peyrard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,117.84 | GBX 1,190 | GBX 1,105 | +6.46% |
From a technical viewpoint, stopped in its bullish trend in early March, the share suffered from a correction phase. But since, the stock has rebounded when it reached it 100 days moving average, drawing a double bottom that launched the share back on its bullish trend. Thus, the resuming of this rising trend will be confirmed when crossing the GBp 1126 level.
Therefore, a long position could be taken above this level aiming at GBp 1190, corresponding to the superior ascending trendline. Nonetheless, a stop loss will be placed under the entry point in case of failure of the bullish overflow.