Now is the time for the bulls, are they ready?

Auto Trader Group Plc (LON: AUTO) is listed on the London Stock Exchange. The company is engaged in the digital automotive industry. It provides a wide range of vehicles for sale, including cars, bikes, vans, motorhomes, caravans, and trucks. In addition to this, they offer automotive insurance products through the segments of Auto Trader and Autorama. The AUTO stock price has a market cap of £5.7B.

The rise of the AUTO stock price

The AUTO stock price has been on the rise since late 2022; one of the reasons would be its appealing half-yearly reports during the bullish phase. The firm has shown an average increase of 15% CAGR in its revenue during this period. Auto Trader Plc has been profitable till it retained earnings with a sales figure of £250M in its latest half-yearly report.

Moreover, writing about actual cash, the firm has made up £135M from operations, accounting for the CFO sales ratio of 0.54. As records state, this autotech company is also pretty good at taking care of its shareholders as it pays regular dividends. In 2022, for instance, the dividend payout ratio from the net profit was 32%. It allocated a dividend per share of £0.08 and a dividend yield of 1.3%.

Technical Analysis and Prediction of AUTO Stock Price

The current price action analysis of the AUTO stock price reveals that it has been rising since late 2022. However, it is currently in a consolidation phase since July of this year. As of this writing, the AUTO stock price is trading at £625, having crossed its 50-day and 200-day EMAs.

Moreover, the observation also states that if the bulls can break the immediate resistance level of £638 and sustain above it, the price will touch its 2nd resistance of £670. If the bears push a rebound, the immediate support level is at £587.

The possible price action

Furthermore, the Bullish investors and traders tested the resistance level of £638 a day ago with weak momentum. As the stock has crossed both EMAs, the bulls can opt for support if a rebound arrives. Therefore, the prediction for the AUTO stock price is bullish. The bulls can sustain above the current resistance if they can show good momentum.

Conclusion

Auto Trader Group Plc’s stock price rose after late 2022, propelled by some upbeat earnings reports. The stock is currently near its immediate resistance after crossing past its EMAs. The price prediction is bullish, given the action of the bulls.

Technical Levels

Support: £587 and £555

Resistance: £638 and £670

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto and stock assets comes with a risk of financial loss.