Persimmon (LSE:PSN) Stock Price Analysis

• The Persimmon Company was founded by Duncan Davidson.
• It is a British housebuilding company. Its stock is listed on the London Stock Exchange. 
• In this article, we will analyze the stock price.

The Persimmon stock was in an uptrend but after 2021 the stock drastically came down. It is currently falling and the chances of its recovery are not too high.

The monthly chart analysis confirms the downtrend. So the chances of downfall are high. 

Moreover, the stock is overall in an uptrend but after 2021 it is in a downtrend. It may recover after taking support on the trend line. It can show upward movement in the coming trading sessions.

Technical Analysis of PSN(Yearly)

The Persimmon chart depicts that the stock is in the uptrend. It can start its recovery by taking the 3rd support point from the trend line(green line). The stock broke the previous trend and came down drastically. So the upcoming trend line can be the breakout point for the stock. It can show some upward movement or recovery after the retracement.

The three white soldiers in the rectangle indicate that the stock can continue its upward move. This stock has shown the up move in the previous rectangle but failed in the next rectangle. The highest price it reached was 24.50 GBP. After that, it never went up to its all-time high.

Technical Analysis of PSN (Monthly)

The Persimmon monthly chart shows that the stock is in an uptrend. The current trend line is the green one and the stock can take support from there. It can start the upmove or recovery. So, the chances of recovery are high and the investment made by the investors can give them good returns.

The pattern in the rectangle is falling three which is a strong indicator for the downtrend. The first red candle, the three green candles, and again the red candle show that the downtrend will continue. As shown in the picture, it continued its downtrend after the pattern.

Technical Analysis of PSN (Weekly)

In the weekly time frame, the stock is in an uptrend. However, at the current price, it is in a downtrend. It can take support from the trend line and can start its recovery. 

The three black crows give the indication that the stock can continue its downtrend or its down move. The bears are present in the market more than the bulls so the market sentiments are bearish. 

Technical Analysis of PSN(Daily)

In the daily time frame, the stock is in a downtrend. So, it’s a good opportunity for the short seller or the bears to take this as a good opportunity.It can continue its downfall after talking about another resistance from the trend line near the current market price. 

The morning star in the rectangle indicates the end of the downtrend and the stock can start its up move or recovery. There are possibilities that the pattern can fail but in many cases, it showed up.

Levels

Resistance Level- GBP 12.605 and GBP 13.840 (Daily Time Frame)

Support Level- GBP 11.420 and GBP 12.110 (Daily Time Frame)

Summary

Overall the stock is in uptrend but at the current market price it is in downtrend and the stock is good for long term investment but is risky for short term investment. 

Disclaimer

The analysis is done for providing information through technical analysis and no investment suggestions are given in the article.