Capita once £8, now £0.37. Unloved and forgotten for a long time. Balance sheet now repaired. Strong interest shown recently with good volume. Worth buying, with patience.
Technical Analysis
Jan to April 2022 CPI entered a phase where it was oversold as shown by the 1M William %R entering below the -80 level. Signaling a potential mean reversion play or reversal play.
Since 25 April the stock has been moving upwards and is now on the verge of confirming a reversal play on the 1Wk chart but with William %R on the 1Wk chart...
Capita - Short Term - We look to Buy at 33.70 (stop at 31.08)
We look to buy dips. We are trading at oversold extremes. Price action moved lower but found support at 34.00. We look for a temporary move higher. A higher correction is expected. Risk/reward is ample to call a buy trade.
Our profit targets will be 48.89 and 55.00
Resistance: 45.00 / 50.00 /...
*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...
CPI has been on a long term downtrend since 2015.
Price is testing the ATL (All time Low) support and descending channel resistance.
RSI is printing a bullish divergence signal.
Price action is printing a double bottom trend reversal pattern.
Bullish ⬆️ - breakout above the double bottom neckline resistance + descending channel resistance.
Target 🎯 - resistance...
Capita's shares took a tumble today after earnings revealed;
The Bad;
£28.5mln for the first 6 months of the year (vs a £31.2mln profit for first 6months of 2019)
-9% revenue
There is also a concern on the groups ability to handle it's debt obligations (which the above has reinforced)
However;
Shares are already down 80% since covid
Capita are on course to...
Capita as a business has some questionable fundamentals, however, these are mostly due to their restructuring debts.
They have recently taken on a contract with Google & Microsoft and with their restructuring plans now coming to the fore, they are primed to push higher being undervalued at present.
Capita has already broken resistance which sat around .43 and...
The European economy is recovering, with the consensus of new stimulus packages, trading big volum and Stock pattern showing that this is a good time to buy vs many stocks.
CPI pattern : Triangle Symmetrical
Buy : $38-$39
TARGET : $58 (+-2)
STOP LOSS : $36
Wish you good deals!
