PZ Cussons Plc stock (LSE:PZC) has sunk to a new low, plummeting towards
the support level at 170.00. The bounce that follows is merely a ruse to
deceive impatient bulls.
Price moved in a zigzag mode within the upper and lower Trendlines between
October and December 2019, while it eventually moved below the lower Trendline,
closing below it. The RSI period 14 is almost below the level 20 (the oversold
region), and that shows a notable weakness in the market.
The fact that the market is oversold means that upwards bounces and rally
attempts would happen occasionally, but they may not be sustainable because the
overall trend in the market is bearish.
It is most probable that PZC would continue going downwards, reaching the
support level at 170.00, 160.00 and 150.00.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Trading realities: Trading realities
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