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ITV Share Price Double-Top Signals a Potential Drop to 83p

The ITV share price strong rally has fizzled out ahead of its full-year earnings. The stock is trading at 108.90p, which is slightly below the year-to-date high of 114.40p. It has doubled since August last year.

ITV, one of the most popular television brands in the UK, has had an excellent few months. After the stock dropped to a multi-year low of 50p in March, the stock recovered to 91p in June and then erased those gains. Since August, the iTV share price has doubled from 54p to the current 108p. 

This performance has happened because of the recent success of its popular shows like Coronation Street and Emmerdale. There are also signs that the UK advertising market is picking up as more companies attempt to reach people staying at home.

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Looking forward, investors will be focusing on the upcoming earnings that will come out on March 9. Investors will be watching the revenue growth, viewership hours, and the recent trend in advertising.

ITV share price forecast

Looking at the daily chart, we see that the ITV stock reached a high of 114p in January. Since then, it has struggled to move above this level, thus forming a double-top pattern. The neckline of this pattern is 98.15 while the top of the pattern is also along the 61.8% Fibonacci retracement level. 

Therefore, since this pattern is usually bearish, there is a possibility that the share price will reverse and possibly retest 83p. However, a move above the double-top level will be a sign that there are more bulls, meaning that there are still more buyers in the market.

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ITV stock price chart

iTV share price

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