Petra Diamonds Limited : An appropriate purchase level
By Sandra Pinturault
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 110.3 | GBX 0 | GBX 108.22 | -100% |
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 109 area should stop this trend and allow a technical rebound toward GBp 116. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
Thanks to the technical pattern, active investors can take a long position above GBp 109. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed of GBp 116 in a first time and then of GBp 132.
However, a bearish trend would regain the upper hand if the security crosses GBp 103.