PSN.L runs into sellers around 2388.00 for the third day in a row
Persimmon plc (PSN.L) Technical Analysis Report for Sep 14, 2018 | by Techniquant Editorial Team
PSN.L finished the week 0.76% higher at 2387.00 after gaining £19.00 (0.8%) today on low volume. Today's closing price of 2387.00 marks the highest close since September 6th. Trading up to £13.00 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 2386.00, the share confirms its breakout through the previous session's high having traded £2.00 above it intraday. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (PSN.L as at Sep 14, 2018):
Friday's trading range was £36.00 (1.52%), that's below last trading month's daily average range of £47.60. Things look different on a weekly scale, where volatility is way below the markets average with the monthly volatility being slightly above average. Prices continued to consolidate within a tight trading range between 2345.00 and 2393.00 which it has been in now for the last trading week.
Even with a weak opening the stock managed to close above the prior day's open and close, forming a bullish Engulfing Candle.
Prices are trading close to the key resistance level at 2398.00. Persimmon plc ran into sellers again today around 2388.00 for the third trading day in a row after having found sellers at 2386.00 in the previous session and at 2393.00 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 2393.00 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 2345.00 where further sell stops might get triggered.