WPP plc : A breakout as buying signal
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,082 | GBX 1,200 | GBX 1,059.24 | +10.91% |
Graphically, the security is up 22% since the 1st January. It seems able to continue this uptrend supported by moving averages and will break out soon the GBp 1090 mid-term resistance. We anticipate a crossing of this level, given the upward orientation of the stock in the medium and long term. Above GBp 1090, a buy signal will be given.
Therefore, investors will benefit from the signal given by the crossing of the GBp 1090 resistance to take a long position in closing price. The objective will be set near GBp 1200. Once the position is opened, a stop loss should be fixed under effective entry point to guard against a trend reversal.