#FTSE #Nasdaq In 2019, China produced 75% of the world total of persimmon! We always thought they were just UK housebuilders, famed for paying their senior staff eye-watering, record breaking, bonus’s, then asking them to leave! It’s funny, a personal grudge against Persimmon has nothing to do with their historically famed build quality failings but instead, for spoiling a view.
Once upon a time, I’d leave for work around 8am, sometimes stopping to take a snapshot of the Clyde Valley, the place where Glasgow is located, as it could look truly spectacular spread out below. I was lucky enough to live at the top of the hills which comprised the southern side of the valley. And then one day, everything changed. A big sign appeared, announcing Persimmon Homes were about to build houses just at the point where I’d sometimes stop and it seemed, within weeks, my view was gone forever. In the years which followed, it was always a major puzzle why the small estate of large houses had not been built to take advantage of the often stunning view. Eventually, the penny dropped it was doubtless economics, being able to squeeze in an extra house or two proving more attractive than visual aesthetics.
As for their share price, it’s currently behaving as if someone has blocked their view of direction as it seems to want to go down.
When the Pandemic Drop happened in 2020, Persimmon share price closed at 1534p despite reaching 1367p with intraday hysterics. This has created the awkward situation where the share price is currently giving a “lower low” in terms of closing price but not a “lower low” in terms of intraday range. Unfortunately, plenty of unpleasant experience has taught Closing Prices tend provide a safer indicator for market direction, so we’re inclined to anticipate the worst for Persimmon.
Movement now below 1398p (the most recent intraday low) calculates with the potential of ongoing reversal to an initial 1259p, visually alarming but hopefully capable of a bounce. The bigger problem occurs, should such a level break, as our secondary target works out at 799p, a price level where a solid rebound almost must happen. Should it ever appear.
Thankfully, the share price doesn’t need try terribly hard to extract itself from this trench its digging, needing above 1670p to ideally trigger near term recovery to 1777 with secondary, if bettered, at 1901p and almost certain hesitation, due to historical movements. Above 1901p and we shall need take another look at the tea leaves.
| Time Issued | Market | Price At Issue | Short Entry | Fast Exit | Slow Exit | Stop | Long Entry | Fast Exit | Slow Exit | Stop | PriorFUTURES |
|
9:50:33PM |
BRENT | 92.97 | Shambles | ||||||||
| 9:52:25PM | GOLD | 1702.6 | Success | ||||||||
| 10:01:31PM | FTSE | 7342 | 7318 | 7295 | 7222 | 7391 | 7406 | 7426 | 7462 | 7368 | Shambles |
| 10:03:47PM | STOX50 | 3561.8 | |||||||||
| 10:05:07PM | GERMANY | 13096 | |||||||||
| 10:07:43PM | US500 | 3937 | |||||||||
| 10:09:51PM | DOW | 31144 | |||||||||
| 10:11:39PM | NASDAQ | 12050 | 12001 | 11829 | 11478 | 12256 | 12326 | 12384 | 12512 | 12178 | |
| 10:12:51PM | JAPAN | 27848 | Nothing | springs | to mind! |