Persimmon Share Price Analysis: Is there hope for the investors?

• The stock has seen a major downfall since August 2022.
• After creating a new low of 956 in July, the stock has seen little recovery.

A big name in UK’s housing development industry, Persimmon claims to make over 13000 new houses every year. The company was founded in 1972 and has seen multifold growth and expansion since then. The company believes in personalizing homes according to their customer’s wishes and need making it a green flag for the customers. 

Technical analysis for the stock-

The stock has been bearish for almost a year now. The stock saw a sharp fall from £1915 levels in August and has been unable to achieve those levels ever since. 

A recovery was seen in February when the stock created a high of £1530 pounds levels but that was only for a few days. Post that, the stock fell to its next support at £1190 and failed to sustain there as well. 

July saw a new low for the stock where the price touched £955 levels but a sharp recovery was seen from there to the current level of £1145 pounds.

On a closer look, we see a downside from the high created last month. The stock currently trades near strong support at £1124. If there is a downside and the stock breaks this level, we can see it further going down to 1040 pound levels. 

Indicators give a mixed signal suggesting a possible sideways movement for the stock. 

If there is an upside from here, 1189 levels will act as the next resistance. Since the stock is in the middle of a zone, a big move on either side is expected. Confirmation must be awaited before taking any side position.

Conclusion:

stock is stuck in the middle of a range and has good possible targets for both sides. A trader must keep a watch as there has been long-term consolidation and a big move can emerge anytime. For an investor, entering currently can be slightly risky as there is no confirmation yet. 

Important Technical levels:

Major support levels- 1124 and 1040 pounds

Major resistance levels- 1189 and 1215 pounds.