- SAGE GROUP IS CARRYING A GREAT MOMENTUM AS THE STOCK IS UP BY 37.22% IN A YEAR.
- STOCK ENDED THE 5 YEARS CONSOLIDATION PHASE AND SURGED SIGNIFICANTLY IN LAST 6 MONTH.
- REVENUE AND INCOME GROWTH IS FLAT TO POSITIVE SINCE 2016.
MARKET CAPITAL OF SAGE GROUP PLC – GBP 10.46 B
CURRENT MARKET PRICE – GBP 1015
Sage group stock price has surged more than 37 % in a year after 6 years of consolidation and the price entered into a strong bullish zone once it breached the resistance zone of 780 – 800, from there market rises up in a steep angle which is a kind of a dream run for any investor.
Sage price made an 52 week high along with an all time high i.e (1028.5 ) on 11 th september and rose more than 4 % in a week which means the stock is currently in a very strong bullish trend and if we watch the chart the price seems to sky rocketed from the lower levels.
The revenue of the company rose from GBP 1.44 B in 2016 to GBP 1.94 B in 2019 but it was not reflected on the stock price , although after 2019 the revenue turned flat and if we talk about the net income the same story can be narrated on net income but now the experts are expecting that the revenue and profit can jump in 2024 .
The price celebrated the opinions of different brokerage firms and because of which the stock rallied in one direction for 6 months till now , although the only bad thing an investor must be concerned of is the rising net debt on the company.
The net debt rose 64% in the financial year 2021 from GBP 159 M to GBP 261 M and further raised by 180% in previous financial year i.e GBP 733 M and now it is expecting that the net debt can further rise to GBP 1 B .
The price is trading above the major EMA levels of 50, 100 and 200 which is a positive sign for the traders who have taken long positions on bottom levels or after breakout.
The price formed the rising wedge pattern and consolidated in that range for 5 years and gave a breakout in May 2023.
IS THERE ANY MORE UPSIDE LEFT FOR THIS STOCK ?
If we talk about a 1 hour time frame then the stock is currently trading in a steep rising channel and forming some future demand zone. Technically there is no supply zone left for the stock so it can rise to more extreme levels but if we consider the rising channel pattern then it can take resistance anywhere near the GBP 1036 – 1050 .
CONCLUSION :-
Right now there are some demand zone visible on the chart i.e GBP 946 – 957 then in GBP 887-892 and very crucial support for this uptrend lies near GBP 794 -803,
And if the price breaks the rising channel then it can fall towards these levels.
TECHNICAL LEVELS:-
Resistance – GBP 1035 – GBP 1050
Support- GBP 957 – GBP 946
DISCLAIMER-
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
