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Buy Diageo (DGO) Right now equity investors are in bullish mood. Despite Merrill Lynch's loss the banking sector in general is seen as oversold and this is prompting investors to return to the market. But we are not yet out of the woods. The Philly Fed survey was weak and the economic data is still coming below expectation but for the time being there is a positive feeling. And companies’ results and earnings are coming good and fuelling the rally. Mega caps are well positioned in case of a slowdown and Diageo is no exception.
The stock has been in a long term bull trend lasting many years, but since October 2007 the stocks has been consolidating sideways. The pattern is triangle [(A),(B),(C),(D),(E)] which is a typical continuation pattern seen in uptrends. It’s a continuation pattern because once it is completed, sometimes in the next few days, the long term uptrend will resume. In the medium term a target is 1150p. The unique timing analysis at e-yield has been developed by Thierry Laduguie, who has been working for investors since 2000. For more information, visit E-yield.co.uk |
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