This report is an updated version of the report published on 13 February 2024 at 08:10 AM GMT.

Company Overview: Barratt Developments Plc (LON: BDEV) is a FTSE 100 Index listed United Kingdom-based household goods and construction company, engaged in housebuilding and commercial development. It acquires land, obtaining planning consents and building homes. Its three consumer brands, Barratt Homes, David Wilson Homes, and Barratt London offers a variety of properties across the United Kingdom. Genel Energy Plc (LON: GENL): is an independent oil and gas exploration and production company, principally engaged in the business of the exploration, development, and production of natural resources. This Report covers the Price Action, Technical Indicators Analysis along with the Target Levels, Stop Loss, Support Levels, Resistance Levels, and Recommendations on the stock.

FTSE All-Share Index (.FTAS) Market Round-Up

Last week, the benchmark FTSE All-Share Index (.FTAS) started flat and traded with a negative side for the entire week. The index made a low of 4129.06 during the week and settled at 4136.74, with a loss of ~0.56 percent for the week ending February 09, 2024. The recent week started neutral but given a positive close above 4141.81 level.

On the technical front, the index is trading above an upward rising trend line support level with mixed sentiment, indicating the possibility of further upward movement. The RSI (14-period) is moving northward with a reading of 46.37, and the current market price (CMP) is also below the 21-period SMA and 50-period SMA, which can act as a small resistance.

Global Markets Wrap-Up

Wall Street witnessed positive movement last week, where the S&P 500 settled at 5026.60 with a gain of ~1.37 percent, while the NASDAQ Composite Index settled at 15990.66 with a gain of ~2.31 percent for the week ending February 09, 2024. 

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 for Barratt Developments PLC (LON: BDEV) and GENEL ENERGY PLC (LON: GENL) for the next 2-4 weeks duration:

Barratt Developments PLC (LON: BDEV) Noted below are the key price indicators for the recommended stock:

Price Action Analysis (on the Daily Chart)

On the daily chart, BDEV’s prices are trading above trendline support and indicating an upside movement. Stock price is supported by the volumes and Stochastic oversold level for positive up move. An important resistance level for the stock appears at GBX 558.00, and prices may test this level in the short term (2-4 weeks).

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, the RSI (14-Period) is moving in the positive zone with a reading of 31.68. The volumes also seem supportive of an upside movement. The CMP is trading below the trend-following indicators 21-period & 50-period SMAs and may act as a small resistance.

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, Barratt Developments PLC 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:

GENEL ENERGY PLC (LON: GENL)

Price Action Analysis (on the Daily Chart)

On the daily chart, GENL’s price is trading above the down sloping trendline support level, indicating an upside movement, backed by positive volume and Stochastic level in the chart. An important resistance level for the stock appears at GBX 81.20, and prices may test this level in the short term (2-4 weeks).

Technical Indicators Analysis (On the Daily Chart)

On the daily chart, the RSI (14-Period) is moving in the positive zone with a reading of 51.00. The volumes also seem supportive of an upside movement. The CMP is trading above trending indicators 21-period & 50-period SMAs, supportive for the stock price.

General Recommendation:

As per the above-mentioned price action and technical indicators analysis, GENEL ENERGY PLC 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: Individuals can consider exiting from the stock if the Target Price mentioned as per the technical analysis has been achieved and subject to the factors discussed above. 

Note 2: 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 ~60% 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 February 12, 2024. 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.