Persimmon

Wednesday, 26th April 2017 15:29 - by Rajan Dhall

Its clear to see that Persimmon shares are on a massive bull trend. If you look at the chart below shares have never been performing better. The UK housing markets is somewhat of a gold mine. I don't really want to go into the fundamentals of the housing market but what I will say is that it is propped up by a housing shortage and government backing through the Help to Buy scheme.

Interestingly something that may be good for shareholders is the remuneration package for the directors, there has been opposition from shareholders about the amount in which the people who run the company are paid in both shares and salary. If there is any information about a reduction in this number it may boost shareholder moral. 

Brokers seem to be bullish on the share price with an average price target of around 2320p, which is only slightly higher than where we are today (2276p).

Having a look at the chart around the release of earnings, if the results are good I think the 2300p level is the first target. On the downside there is much more traffic, 2250p is a short term level of support but 2150p is the bigger area. Only if results are extremely bad will we see a move back to value which is around 2100p. Going into the release, there has not been to much director share dealings and though the Co. books there was a large sell order yesterday but I am assuming there might be some options exercising. All in all there is nothing to say this trend wont continue, I look forward to reading the earnings report to see if the bull run continues.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.