Foxtons: Break of 50 day moving average points to 75p

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Foxtons: Break of 50 day moving average points to 75p

It would appear that scrapping the lettings agent fee in the Autumn Statement is a move that will command broad support amongst the general public. Foxtons (LON:FOXT) is one of the companies in the firing line.

The initial reaction in terms of the share prices of house builders and estate agents to the Referendum vote result on June 24 was a very negative one. However, even though there was a revival of sorts from oversold regions, for the likes of Foxtons conditions remain mixed to say the least. There should have been a boost to the estate agent from the weakness of Sterling, but even this has not been able to lift the mood or the share price.

On the daily chart it can be seen that there has been a falling trend channel which can be drawn in from as long ago as this time last year. The top of the channel runs at 120p, with the message now being that as little as an end of day close back below the 50 day moving average at 106p could be enough to trigger a new and significant leg to the downside. Just how low this could stretch is suggested by the support line projection from last year pointing down to 75p. The timeframe on such a move could be as soon as 1-2 months after the 50 day line is broken.


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