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- 1 DPLM stock price prediction: The stock has experienced a bullish trend since its half-yearly reports were posted.
- 2 The company is making excellent growth with the help of its subsidiaries, more information is below.
- 3 The current price has broken the upward trend, the bulls need to arrive to save the day.
The UK-based supplier of technical products and services (LON: DPLM) has been in the headlines lately because of the uptrend in its share prices.
Start of the Sunshine
The DPLM stock price made a gap opening and started a bullish trend when its Q4 financial reports started floating in the market. The firm reported an impressive growth of 21% in total revenue. This growth was filled with an 8% boost from the acquisitions made in the last year and a 4% gain from currency fluctuations.
According to Diploma PLC, their business model delivers value to their customers, encouraging repeat purchases. This statement has been proved through the optimum operating margins of over 14% on average.
The Silent Hero for the Sunny Days
The group also announced the acquisition of DICSA for £170m. DICSA is a distributor of fluid power solutions into the European Seals aftermarket. Another acquisition, TIE, which cost £70m, has performed well since its purchase earlier this year.
It is no wonder that when the retail and institutional investors saw this, the stock price surged up to start a bullish trend. As the DPLM stock price broke past the resistance level of $2800 back in May of this year, the bears gave a rejection. However, the bullish trend was strong enough to sustain above this level, and the stock prices started steadily climbing.
Technical Analysis and Prediction of DPLM Stock Price
The investors who had faith in the company’s potential were rewarded as the stock prices rose and the bullish trend became more apparent. Fast forward to July, and the bulls attempted to break past the resistance level of $3332. The breakout lasted for 20 days, and investors were optimistic. However, as the bullish traders started booking their profits, the share prices saw some correction.
What is the Price Prediction?
As of now, the DPLM stock price is currently trading at $3006. The bears have taken control as the stock falls below the current trend line. Moreover, the 200-day EMA is positioned between the immediate support of $2880 and the immediate resistance of $3126.
The 200-day EMA has the potential to act as a support point for the Bulls to make a comeback. However, if the DPLM stock price tests its support, it may lead to a trend breakdown and will further initiate a bearish trend. On the other hand, if the stock takes the trendline, it will be short for the breakout to happen as the resistance is nearby.
Conclusion
The DPLM stock price is on an uptrend thanks to financial reports, which gave confidence to the investors. However, bears have taken control since mid-August and pushed the price down. The price prediction depends upon whether the bulls can take on the trendline or will fall to their support level.
Technical Levels
Support: £2880, and £2604
Resistance: £3126, and £3332
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.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
