LIETO, FINLAND - MARCH 12, 2016: Cat 314E LCR and 313 F hydraulic excavators along with other Cat construction equipment seen at the public event of Konekaupan Villi Lansi Machinery Sales.
Costain (LON: COST) share price has performed very well in this quarter. The shares of the construction and engineering company are up 40.5% from their June lows. However, the bulls seem to have lost momentum after a strong rally.
On Tuesday, Costain stock turned red for the 4th consecutive day. The shares were trading at 58p after dropping 1.69% close to the end of the trading session. Technical analysis shows that the 61p resistance level needs to be reclaimed to aim for more upside.
LON: COST Gets Upgraded By Peel Hunt
As per the recent news, Peel Hunt has upgraded its outlook on the Costain Group. The leading investment bank has changed the stock rating from ‘add’ to ‘buy’. The upgrade comes at a time when the shares of the British infrastructure company are showing weakness.
According to the latest reports, around 59% of the Costain Group is owned by institutional investors. This shows that the institutions have been the biggest beneficiaries of the recent surge in Costain share price. 8 investors are the majority stakeholders, with a collective ownership of 53%.
Costain Share Price Forecast
Bears are gaining momentum after the recent rejection from the 61p resistance. Technical analysis of the LON: COST chart on a higher timeframe reveals that the 200 MA on the weekly chart also lies close to 61p. This makes this resistance level even harder to break.
Costain share price forecast is still looking positive as its uptrend remains intact. However, if bulls fail to break above 61p, a retest of the 50p level will be on the cards. The BOE’s tone in this week’s meeting and the FOMC decision in the United States may keep the price action volatile in the coming days.
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