Good sign:Is It the Right Time to Buy the DS Smith Stock?

• DS Smith stock has been bearish this entire year, wiping off almost 11% of the investor’s money in the last 6 months.
• The stock made a yearly low of around £2.65 in June but saw a sharp recovery from there.
• The current setup looks good. A good investment opportunity can arise in the upcoming months.

DS Smith plc is a British multinational packaging business, headquartered in London, England. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index. 

Financially, the company looks pretty strong. There is a constant increase in the net revenue of the company. The net income has also been increasing year by year. That’s a huge positive for the company and its investors.

Technical analysis for the company:

As the the above given chart depicts, the stock has continued its bearish momentum throughout the year. The DS Smith plc stock made a high of £3.68 in February but has been on a constant fall since. The stock traded in the range throughout March, April, and May but gave a steep breakdown in June. That became a yearly low of £2.65. 

A sharp recovery was seen from those levels. The stock faced rejection from £3.10 levels then and has been consolidating since. On a daily chart, the stock seems to be giving a little confusing signs. However, the sentiment remains positive. 

If the stock moves up from the current levels, £3.10 will be the first target. As long as the stock trades in this range, you should refrain from making a move. If the DS Smith plc stock comfortably breaches £3.20 levels, you can look for a buy entry as the zone above remains highly positive for the stock. £3.45 and £3.7 appear to be good targets for the stock in the long run. 

In case of a downside from the current levels, £2.6 will be the first support and target for the stock. Below that, £2.5 looks like a highly strong support.

An hourly chart shows that the stock recently touched its support at £2.87 but saw a sharp recovery from there. The stock has been recovering slowly and the current setup too looks good. As long as the stock trades above £2.87, there is not much need to worry for the investors. 

An hourly chart shows the stock is taking support from 50 and 100 EMA. That can be considered another positive going ahead for the stock. Potential investors must wait for the stock to reach a healthy price range before making a move.

Conclusion:

The DS Smith Stock currently looks stuck in a zone but is giving good signs of recovery. If the current momentum continues, we can expect a good bullish movement ahead. Good buying opportunities are possibly ahead and if played smartly, the stock can turn out to be a really good investment.

Technical levels: 

• Major support levels: 2.87£ followed by 2.65£.
• Major resistance levels: 3.03£ followed by 3.20£.

Disclaimer

The views and opinions of the author, or anyone named in this article, are for informational purposes only. They do not offer financial, investment, or other advice. Investing or trading crypto assets involves the risk of financial loss.