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Here’s Why Purplebricks Share Price Fell 6.53% Today

Simon Mugo trader
Updated 4 Sep 2020

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Shares of Purplebricks Plc (LON: PURP) today fell 6.53% extending a 5-day losing streak as investors remained decidedly bearish about the UK property company.

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The lack of fundamental drivers behind the move leads us to look at the stock’s price chart to see whether there could be a technical or psychological reason behind the recent selling.

Luckily for us, it seems that Purplebricks shares turned lower after hitting a major resistance level, which saw sellers step into the markets and push its price lower.

Purplebricks shares turned lower after trading at 97p, which happens to be a major support/resistance level that has held since November 2016.

The level had earlier acted as a support zone before turning into resistance following the late February and March 2020 stock market selloff.

The stock is yet to break above this crucial level, which could fuel a major rally creating an excellent risk: reward setup for both long-term investors and short-term traders.

Purplebricks share price

Tradingview chart of Purplebricks share price 04092020

Purplebricks shares fell 6.53% today to trade at 80.1p having ended yesterday’s session trading at 85.7p.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading