Barratt Development shares continue to drift

Just over a week away from Barratt’s interim management statement, and the shares are testing some long term support.

Since the beginning of January 2009 the share price of Barratt Developments increased seven-fold, but in the last two months have dropped by almost 23%.

Obviously the UK housing market continues to be buoyant and this has certainly benefitted the company, clearly helped by George Osborne’s budget comments that he would be extending the home buyers scheme, which was devised to help first-time buyers into the market.  House builders like Barratt have seen sales boom on the back of this. Their still appears to be a shortage of supply to the market, with a recent report from property analysts Hometrack stating that 97% of properties in the UK are sold for the asking price.

Yesterday saw Barratt’s share price move into oversold territory on the RSI and, as long as the share price continues to close above the 345p level, we would expect to see a bounce.

Barratt Developments chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.