- CPI stock price prediction: The stock price reacted after the earnings report as the revenue has declined and so has the stock price.
- The price took a resistance from the 50 and 200 EMAs. What’s next?
- CPI stock price is seen to take a bounce off from its 2nd support. Is it possible?
CPI PLC Stock Previous Price Action and Forecasting
CPI’s Previous Price Action
Capita PLC share price has fallen more than 70% from the count of 5 years price. During December last year, the CPI stock price started going into a slight uptrend. From the level of GBX 22.10, the price saw a bullish sentiment till GBX 44.66, more than 2 times returns in less than 3 months up until March. Since then, the bears have given a good amount of rejection to the bulls, bringing the price down to current levels.
CPI’s Current Price Action
Currently after the earnings report where the revenues are declining from previous years, the market has reacted, and the price has fallen. Trading at the level of GBX 19.94, the stock is in a bearish momentum. The CPI stock is seen trading between some supports and resistances, while the indicators are also giving some insights for the near future.
Support: Immediate support is seen at the level of GBX 19.9. Although the price has broken it, it might be just a deviation as strong testing has been done for the support, back in March and April.
The second support is been taken as a round-off with the trading psychology which is at the level of GBX 18.0
Resistance: The first and immediate resistance is made after the major support was broken at the level of GBX 26.1 followed by a strong volume bar. The second resistance is made at the level of GBX 30.7.
Indicators
MACD: The MACD graph is showing a bearish trend since April 2023. Currently, the MACD line has crossed over the signal line to come down below it, indicating short-term bearish sentiment in the market.
RSI: The RSI has fallen from the mid-level since July 2023 and is currently in the over-sold zone of 19 points, which is likely to bounce back up to the 30th level soon.
EMAs: The 50 EMA has come down below the 200 EMA after the price took resistance from both the EMAs on July 23, of this year. Currently, the 50 EMA is at the level of GBX 28.32 and GBX 29.92.
Price Prediction for CPI Stock
As the market has reacted to the earnings report given, the current situation is very bearish. As per the technical analysis, the price is very likely to bounce back from the 2nd support, if not the first one. This can also be confirmed by the RSI. It is seeming that a curve can be made where the levels will rise from the current oversold zone.
Following that, if the price has seen a bounce off at the time of reading this, it is likely to consolidate within the given zone for some, before rising past resistance 1 as the volume levels are huge.
Conclusion
The price of Capita PLC stock has seen a major downfall after the earnings reports. The stock has lost more than 70% in the last 5 years due to its net losses and declining revenue. Currently, the price has broken major support and is looking to bounce back from the 2nd resistance.
Technicals
Support: GBX 19.89, GBX 18.0
Resistance: GBX 26.1, GBX 30.7
RSI: 19
50 EMA: GBX 28.0
200 EMA: GBX 29.84
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
