Company Overview: Hiscox Ltd (LON: HSX) is a Bermuda-based diversified international insurance company. The Company is a holding company for subsidiaries involved in the business of insurance and reinsurance in Bermuda, the United States (USA), the United Kingdom (UK), Guernsey, Europe, and Asia. Paragon Banking Group PLC (LON: PAG) is a United Kingdom-based specialist bank. The Company’s lending products include mortgages for landlords and loans for business customers. Its lending is funded by deposits from savings customers, together with wholesale funding. This Report covers the Price Action and Technical Indicators Analysis along with the Target Levels, Stop Loss, Support Levels, Resistance Levels, and Recommendations on these two stocks.
FTSE All-Share Index (.FTAS) Market Round-Up
Last week the FTSE All-Share Index (.FTAS) settled on a negative note, despite the bullish move from the US equity markets. Notably, FTAS settled at 4303.84 with a loss of ~0.88% for the week ending April 11, 2025. The recent move in the domestic indices is majorly led by the negative indications from the global equity markets.
From a technical perspective, the index maintains a bullish undertone, trading above a key ascending trendline and a strong horizontal support area, suggesting the potential for continued upward movement. The 14-period RSI stands at 40.79, holding steady in the positive territory and indicating sustained bullish sentiment. However, the current market price remains below both the 21-period and 50-period SMAs, highlighting nearby resistance levels. This configuration reflects a strengthening bullish bias, but further gains may depend on the index’s ability to break above the 50-period SMA with conviction.
Global Markets Wrap-Up
Wall Street wrapped up the week on a strong note, with major indices extending their recent rally. The S&P 500 surged 5.70% to close at 5,363.36, while the NASDAQ Composite posted an even stronger gain of 7.29%, finishing at 16,724.46 for the week ending April 11, 2025.
Having understood the US market performance over the past week, taking cues from major global news, and based on technical analysis of the FTSE All-Share Index (.FTAS) for the upcoming week, now have a look at the two LSE-listed.
stocks pick from the technical analysis standpoint. Noted below are the recommendations based on entry price, target prices, and stop-loss HISCOX LTD (LON: HSX) and Paragon Banking Group PLC (LON: PAG) for the next 2-4 weeks duration:
HISCOX LTD (LON: HSX) Noted: below are the key price indicators for the recommended stock:
Price Action Analysis (on the Daily Chart)
On the daily chart, HSX demonstrates strong bullish momentum, trading above a key horizontal support line, backed by a positive candlestick pattern. These signals point to the potential for continued upward movement. The stock remains well above critical support levels, indicating the possibility of further gains. With the bullish trend intact, the outlook for HSX remains favourable, suggesting sustained upside potential in the near term. As it approaches resistance at GBX 1273.50, this level is expected to be tested in the next 2-4 weeks. A breakout above this resistance, especially with rising volume, could propel the stock towards the next resistance at GBX 1350.00, further reinforcing the bullish outlook with high confidence.
Technical Indicators Analysis (On the Daily Chart)
The RSI moving in the positive zone with a reading of 51.49 suggests that the stock has some bullish momentum, supported by volumes indicating increased trading activity. The CMP is trading above the trend-following indicators 50-period (SMA) may act as a small support level.
General Recommendation:
As per the above-mentioned price action and technical indicators analysis, HISCOX LTD (LON: HSX) is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decisions should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of recommendation is as follow:
Paragon Banking Group PLC (LON: PAG)
Price Action Analysis (on the Daily Chart)
On the daily chart, PAG trades above a significant horizontal support level, supported by a bullish candlestick pattern that signals strong upward momentum. The trend is further reinforced by increasing trading volumes, suggesting continued strength and potential for further gains at current price levels. The stock is approaching resistance at GBX 840.00, likely to be tested within 2-4 weeks, as it remains above an ascending trendline. A breakout above GBX 840.00, supported by higher volumes, could propel the stock toward the next resistance at GBX 880.00, reinforcing the bullish outlook with high accuracy.
Technical Indicators Analysis (On the Daily Chart)
The RSI moving in the positive zone with a reading of 53.96 suggests that the stock has some bullish momentum, supported by volumes indicating increased trading activity. The CMP is trading above the trend-following indicators 21-period and 50-periods SMAs and may act as a small support level.
General Recommendation:
As per the above-mentioned price action and technical indicators analysis, Paragon Banking Group PLC (LON: PAG) looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock. Investment decisions should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of recommendation is as follow:
Markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Upcoming Major Global Economic Events
Market events occur on a day-to-day basis depending on the frequency of the data and generally include an update on employment, inflation, GDP, consumer sentiments, etc. Noted below are the upcoming week's major global economic events that could impact the FTSE All-Share Index and listed stocks’ prices.
Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks, etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: Individuals can consider existing from the stock if the Target Price mentioned as per the technical analysis has been achieved and subject to the factors discussed above.
Note 3: Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Note 4: How to Read the Charts?
The Green colour line reflects the 21-period moving average while the red line indicates the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.
The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.
The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume and liquidity in stocks helps in easier and faster execution of the order.
The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: In general, it is a level to protect further losses in case of unfavorable movement in the stock prices.
Risk Reward Ratio: Risk reward ratio is the difference between an entry point to a stop loss and profit level. This report is based on ~80% Stop Loss of the Target 1 from the entry point.
A trailing stop-loss is a modification of stop-loss in case of favourable movement in the price to protect the gains. Individuals can Trail the Stop-Loss as per the aforementioned levels if the stock price achieves more than 50% of the Target 1. Individuals should consider exiting from the position as per the Trailing Stop-Loss level if the price starts moving downwards after achieving more than 50% of the Target 1.
The reference date for all price data, currency, technical indicators, support, and resistance levels is April 15, 2025. The reference data in this report has been partly sourced from REFINITIV.
Abbreviations
CMP: Current Market Price
SMA: Simple Moving Average
GBP: British pound sterling
GBX: British pence sterling
RSI: Relative Strength Index
Note: Trading decisions require a thorough analysis by individuals. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.
Past performance is not a reliable indicator of future performance.
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