Looking at the technical picture of Hays Plc stock (LON: HAS) on the daily chart, it seems to be forming a possible bullish pennant, which could push the price higher. After forming a double bottom recently, the stock of a major UK recruitment company travelled higher and broke through its “neckline”, which is between the 153.20 and 154.70 levels. But, before we may consider any higher areas, HAS would need to overcome a few barriers first, hence why we will remain cautiously-bullish for now.
If the stock moves higher and breaks above the 165.90 barrier, marked by the highs of June 21st and 24th, this would confirm a forthcoming higher high and more buyers could be joining in. We will then examine a possible move to the 175.20 hurdle, marked by the low of October 10th 2018, which if broken could open the door towards the next potential resistance area, at 183.00. That area acted as a good support level on October 8h and 9th, 2018.
Our oscillators, the RSI and the MACD, are somewhat in support of the above-discussed idea. The RSI is above 50 and points slightly to the upside. THE MACD, despite pointing fractionally lower and being below its trigger line, still remains above zero.
On the downside, if the lower side of the pennant gets broken and the price falls below the previously-mentioned “neckline”, this might force a few existing investors to liquidate some of their positions. This could lead to HAS moving towards the 142.50 obstacle, a break of which may send the stock even further down, possibly targeting the 131.30 level, which is the lowest point of this year.
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