Taylor Wimpey Share Price: $129.90 Support is Key to Future Moves

The Taylor Wimpey share price is trading 0.28% higher on the day after a failure of the bears to take Monday’s selloff below the 129.90 support. This support level has formed a solid barrier to downside movement in the last few days. 

The fundamental trigger for the upside move may not be unrelated to the company’s decision to sign up for the UK government’s Building Safety Pledge. The pledge requires developers to take financial responsibility for fixing unsafe claddings on high-rise buildings constructed in the last 30 years that are over 11 metres tall.

By this pledge, Taylor Wimpey and other developers that have signed up to this pledge will not just offer remediation on buildings built since 1992. but would return monies already received from the Building Safety Fund.

CEO of Taylor Wimpey Pete Redfern hailed the company’s decision to sign the pledge, saying it had taken “early and proactive action” to address issues with cladding and fire safety on all its impacted buildings. To what extent can the Taylor Wimpey share price sustain the recovery, if any?

Taylor Wimpey Share Price Outlook

The active candle’s bounce on the 129.90 support following the symmetrical triangle breakdown on the daily chart continues the truncation of the measured move to the south. However, the intraday bounce remains limited by the combined resistance of the 132.85 price mark (4/29 March low in role reversal and 8 March high) and the triangle’s lower border.

Therefore, a rejection of the bounce and degradation of the 129.90 support must happen for the downside measured move to resume. This move targets completion at 116.60 and must take out pivots at 125.45 (7 March low) and 120.40 (6 November 2020 low).

On the flip side, the bulls need to force a break of 132.85, 136.65 and 142.30 to take the price above the pattern and render it invalid. This opens the door for a recovery towards 147.35 (7/12 February lows in role reversal) and the 152.40 barrier.

Taylor Wimpey: Daily Chart