The Taylor Wimpey share price is surging today ahead of its full-year and fourth-quarter earnings. The shares are trading at 166p, which is 14% above this year’s low of 144.95. Similarly, the Persimmon share price has also jumped by more than 6%.
What is happening: Taylor Wimpey will be the first UK housebuilder to publish its fourth quarter and annual results this week.
Analysts expect that the company will release relatively positive results because of how strong the housing market was last year because of the government’s support programs.
However, there are still key concerns about whether the trend will continue as these support measures end. In its recent update, the company said that it expects its results to be “materially above the top end of analysts projection.”
Taylor Wimpey share price outlook
The four-hour chart shows that the Taylor Wimpey share price has formed an horizontal channel in the past few weeks. This channel is between the support and resistance levels at 147p and 171p, respectively. It is also being supported by the 25-day and 15-day exponential moving averages.
Therefore, in my view, the outlook for the shares is currently neutral. Any moves above 171p will mean that bulls have prevailed while a drop below 147p will send a signal that bears have prevailed.