without_worries

CAPITA PLC - Regular bullish divergence

Long
LSE:CPI   CAPITA PLC ORD 2 1/15P
*Investment opportunity - low risk*

On the above monthly chart above price action has corrected 95% since mid-2015 with following oversold condition (dark orange column). There now exists a number of technical indicators that make Capita an exciting stock to add to your portfolio. Lets go through them:

1) Regular bullish divergence . Price action makes a lower low while the oscillators print a higher high. The 2-month chart below provides a clearer picture of this bullish divergence .

2) Volume increase. A large capitulation candle formed during the month of March 2020, ever since buyers have been accumulating. Together with point (1) above this is very bullish .

3) Monthly Bullish engulfing candle. Indicated above with the blue ‘BE’ marker, the Bullish engulfing candle on the monthly chart is not to be ignored. A very powerful indication of an imminent trend reversal.


A buy from 32 is perfect

1st target, 75


2-month chart

Trade active
Trade active: Up almost 40% in one month - fantastic.

Price action is currently approaching a point of resistance, a pullback may occur - ignore it. There is no indication of a sell signal whatsoever.
Trade active
Comment: up 42% so far, if you're patient price action will reach 72 not before long.


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