Can Bellway extend March's 24% gains?

Graph showing a slow uptrend
Fiona Cincotta
By :  ,  Market Analyst
 

Bellway has rallied around 1% this week, in its fourth straight week of gains. The house builder has rallied 24% so far this month.

The impressive gains as Bellway reports impressive results.

Bellway completed a record number of houses in H1 and reinstated its dividend.

Revenue's came in +11.6% compared to the same period last year at £1.7 billion, although operating profits remained flat.

Bellway expects to complete a record 10,000 homes this full year. The average house sale price also rose to £303,206.

Watch for Monday's Nationwide house price index which is expected to show a 6.9% YoY rise in house prices, 0.7% MoM.

Where next for Bellway share price?

Bellway trades above its 50, 100 sma on the daily chart and above a steeply ascending trend line from early March - a bullish trend. 

The RSI is supportive of further gains

The hammer candle is an encouraging sign.

Buyers need to break through resistance at 3518 last week's high to test 3600 October 7 2019 high ahead of 2018 high of 3730.

Failure to break through the horizontal resistance at 3518 could see the price test suppport of the ascending trendline at 3535. A move below here could see the bear gain momentum towards 3200.


Related tags: Equities

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