Redrow could reach its GBp 280 resistance.
From a fundamental viewpoint, the company is strong. Sales are expected to rise by +22.7% by the end of the year, which means company's growth is very dynamic. The Thomson Reuters consensus revised regularly upward EPS estimates of the company for the current year.
Technically, the security is in an uptrend on all time scales and it is supported by moving averages. The bullish trend will not be stopped until prices are above the GBp 226.3 short term support. Exceeding the GBp 260 resistance, corresponding to the highest since 2008, will give a new impetus to the stock in order to reach the long term resistance.
In consequence, investors can take a long position in Redrow, on crossing the GBp 259.8 resistance, with a first target price at GBp 280. This level is the long term resistance. A new bullish fluctuation could lead the security toward its highest level in case of breakout of this resistance. A stop loss will be set under below the effective entry point at GBp 250.