The majority of stocks reflect their fundamental performance in their stock price. However, in the case of Dechra Pharma (LON: DPH) it is slightly different. As per Simplywall.st analysts, the actual earnings per share for the stock are down 5.3% per year.
The 1.2% dividend yield of Dechra Pharmaceuticals may not be the main force behind the share price either. A 13% growth in this firm’s revenue per year is considered a positive sign of growth. This may be possible that the management has given more importance to revenue growth than EPS growth at the moment. Besides, it has little to no effect on the stock prices.
Technical analysis and prediction of DPH stock price
The DPH stock price made a long bullish candle back at the start of April, which led the price to the supply zone of £3826. However, the bulls couldn’t push further as the bears on that level were strong enough to reclaim it again.
As of this writing, the DPH stock price is £3788, just below the immediate resistance of £3826. The price first ate some liquidity on the upper side, forming a long shadow. The DPH stock price will likely go down to its immediate support once again before trying to break its immediate resistance.
EMAs to rescue the downtrend?
The two major Exponential Moving averages (EMAs) exist before the immediate support of £3148. The 50-week EMA has done a slight bullish crossover with the 200-week EMA at the start of this September. As the stock price comes down to fill the liquidity on the downside, these EMAs will support the bulls.
Furthermore, beyond these supports and resistances, the relative strength index (RSI) line is in an uptrend after touching its oversold zone of 30 back in October. It was the time when the stock hit its 2nd resistance of £2548. The RSI line is at 60, moving toward its over-bought level of 70.
The lenient trend in MACD
The Moving average convergence divergence (MACD) graph indicates a lenient trend. During the rise of a bullish candle in March, the MACD line made a bullish crossover with its EMA. Currently, both lines are observed to make a slight bearish crossover while still being above the neutral level of zero. The MACD is at 147, while its EMA is at 164.
Conclusion
The stock price of Dechra Pharma (LON: DPH) is not affected by its financials. However, at present, the stock is trading near its resistance. It is predicted that the DPH stock price will move down to make another low till its immediate support level.
Technical Levels
Support: £3148, and £2548
Resistance: £3826, and £4322
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 assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/30/dph-stock-price-the-market-ate-bullish-liquidity-whats-next/