Over the past few weeks, Pennon's share price has retreated from its all-time high of 797p, says Steven Mayne at www.egrbroking.co.uk.
Traders should note that the price is now around its 200-day moving average. Since the start of its present major uptrend in 2009, this has proved an excellent level at which to establish long positions. Buy, targeting a move to 800p and placing a stop-loss around 710p.
