Pernod Ricard An imminent consolidation before crossing its all-time highs?
Analysis published on Thursday, April 27, 2023
Although Pernod Ricard (RI) disappointed in its quarterly results, the fact remains that its turnover grew by 7.6% over the first nine months of the 2022/2023 financial year. This explains why the title quickly recovered after the decline at the opening of the Paris session. And when we look at the weekly chart, prices are just a stone’s throw from its all-time highs. With an uptrend from the low points of the Covid crisis which comfortably positions the bulls.
The crossing of €196, which relaunched the race towards historic highs, also contributed to the good performance of the MACD and the RSI in relation to their respective waterlines. Even if the second is approaching the overbought zone, the upward movement since the end of September 2022 seems relatively healthy.
But to give yourself a chance to definitively cross €217, wouldn’t it be worth going through a bearish sequence? In this event, a consolidation towards €196 would make sense. Investors who missed the bullish train could catch up somewhat, if a throwback to this support were to occur.
On the other hand, a break of the €196 would lead the price of RI towards the ascending line. An overflow of the latter would neutralize the uptrend with a sales target of €172. Below this threshold, the balance of power would change in favor of the bears. But as we speak, the scenario of a downtrend reversal would remain fanciful given RI’s fundamental and chart situation.
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