Bullish from the downward channel marks the continuation of the rally from the Brexit day low. On the higher side, major resistance is seen around 1900-1910 levels (falling trend line resistance).
On the downside, only a daily close below 1800 would signal bullish invalidation.
The stock retreated from the critical resistance around the psychological figure of 1800 and was last seen trading around 1732.
The daily candle is now a bearish outside day.
A break below 1700 would open doors for a test of the falling channel floor seen today around 1573.
Tomorrow brings the earnings of UK home builder Persimmon.
UK home builders have performed well in recent times with the UK government backing the housing market with expansion plans. In terms of recent broker recommendations UBS, Credit Suisse and Canaccord have all upgraded to company within the last 4 months.
* The weekly chart is showing bullish hammer...
Daily chart pattern – Rising channel
Housebuilder Persimmon has reported a 29% jump in first-half profits and said customer interest since the Brexit vote has been "robust". At the time of writing, shares were up 3.68% at 1860 levels. Daily high stands at 1884 levels.
A bullish break above 200-DMA level of 1901 would open doors for pre-Brexit level of 2125....
Hourly chart has -
Inverse flag and pole formation. This a continuation pattern which means a bearish break signals continuation the downtrend.
The hourly RSI has formed falling tops, which suggests the odds of prices moving towards a bearish break are high.
