UK home-builder and development space looking interesting at current (technical) levels (also see Barratt Developments - BDEV).
TW at lower range of linear regression channel as well as testing prior breakout/supply area (now potentially support).
Not sure if going trade lower in the next few days but the reward to risk at current levels appear attractive...
After Boris speech today about housebuilding, I looked into house builders, & Taylor Wimpey really caught my eye. Director buys all above the SP, recent placing @ 1.45 and most importantly a golden cross has formed #TW
Taylor Wimpey Analysis.
Currently trading at more than a 54% discount from the current yearly highs and price is sat around 109/110 support zone. This price level was the very bottom of the lows seen during the 2016 sell-off.
They have a strong dividend yield history paying over 9% and before covid-19 came on to the scene, their company financials were looking...
Weekly just made a new high before the stock price fall to test support level @ 193.05. Potentially, TW can re-test the swing high at 237.10, however, further decline below 185 is more desirable before buying the stock.
N.B
- Let emotions and sentiments work for you
-ALWAYS Use Proper Risk Management In Your Trades
TW marking out a bull flag with decreasing volume, looking to land on its 200ma on the daily chart. It is usually a reliable pattern in this company though there is so much going on in the wider market I will be waiting for a breakout on volume with a backtest on the hourly.
Taylor Wimpey typically trade well over the Winter period which we are about to enter.
154 resistance level has been broken.
Possible bounce off the current highs at 165 and a retest at the 154 support level.
Alternatively and hopefully it will break through the trending highs at 165 and onto 176 where it will test the support level
Aiming for 10%
SELL - TAYLOR WIMPEY (TW.)
Taylor Wimpey plc is a residential developer. The Company operates at a local level from 24 regional businesses across the United Kingdom, and it has operations in Spain.
Fundamentals
Brexit uncertainties continue to undermine the performance of certain UK housebuilders. The ongoing political threat is sending shares in Taylor Wimpey...
All uk house builders heading towards 200DMA. TW already on it so will be a guide to the others. Should bounce here for long term hold - if it falls below the 200 then cut the trade quickly though.
Daily demand zone around 175 held firm, with the stock currently in consolidation. Weekly timeframe has been creating higher lows. First target is 190 (1:1 Risk reward). Plan on taking 70% profits and letting the other 30% run.
UK House builders have faded post budget spike. The daily candle is now a inverted bearish hammer.
That has ensured the falling channel is intact.
Prices currently trade around 149.40. A daily close below 148.58 (38.2% Fibo) would add credence to the failure at the channel resistance and open doors for a sell-off to 140.00 levels.
