- Telecom Plus stock has been highly bearish this entire year wiping off almost 27% of the investor’s wealth in 2023.
- The stock has been highly range-bound. Many strong ranges nearby make it a difficult stock to trade as well as invest in.
- Sellers have been active the entire time. The current setup also doesn’t look very good for a buying move.
Telecom Plus plc is a British multi-utility supplier of gas, electricity, home insurance, and landline, broadband, and mobile services to residences and businesses. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
This company’s financials have been stable in terms of revenue for the past 2 years. 2023 too has been really great for the company in terms of both revenue and net income.
Technical analysis for the stock
As we see in the chart above, the stock has been highly bearish for a long time, giving investors huge blows. The stock hit a yearly low of £14.4 levels and saw a small recovery from there. It again faced a rejection from its resistance at £17.72. The current setup looks slightly weak because buyers are pretty scared. They do not wish to enter at the current levels and sellers got the upper hand.
If we see a rejection from here and the stock price falls, then we can expect further bearish momentum. The £15.41£ level has been a strong supply zone for the stock historically. Until the stock trades above £15.41, things look safe.
Looking at the current setup, we should expect a strict range-bound sideways movement in the upcoming weeks. The current setup does not give hints for any possible big movement.
If we see a good recovery going ahead, £17.72 can be a good entry zone with £19.7 as the target. However, this may not happen very soon!
On an hourly chart, we can clearly see strong negative sentiments in the stock. The stock is currently trading very near its weekly support level. If we see a breakdown from here, £15.51 levels may be touched within a week. Volumes have decreased, strongly indicating fear in the market for the stock. That is a red sign for the investors.
Traders should be highly active as good downside moves can be captured going ahead. £15.51 is a very crucial level for the stock and a breakdown would mean a huge further downside in the stock.
Whilst the current setup looks weak, analysts have predicted a huge upside for the stock in a year. The current yearly target given by analysts stands at above £28, which is more than an 8-% upside. Goog buying positions can occur only if there is an increased buying volume and the stock breaches £17.72 levels.
Conclusion
The current setup looks negative and a further downside may occur in the upcoming weeks. The TEP stock can be a good pick in the long run because it has pretty strong financials. Analysts also predict a huge upside. It is not the right to make an entry. Investors must wait for the stock to breach strong zones before making any move.
Important technical levels
- Major support levels: 15.41£ followed by 14.4£.
- Major resistance levels: 16.93£ followed by 17.72£.
