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Can Barratt reclaim pre-Brexit highs?

Technical analyst Zak Mir thinks housebuilder Barratt Developments PLC (LON:BDEV) will struggle to reclaim its pre-Brexit highs anytime soon.

“You can see the shares were hit by the surprise referendum result and the stock has bounced back to roughly half of what it lost,” Mir tells Proactive.

“[Shares] are now struggling just below the 200 day moving average at 509 and really that is the big line in the sand for the shares.”

On top of Brexit, Mir claims that Barratt hasn’t been helped by the arrest of one of its executives, Alastair Baird, which sent weakened the price even further.

While he thinks it’s difficult to get back up towards the £6 level, Mir doesn’t totally rule out a rally.

“[There’s a] bit of support there towards the 440p/ 450p level which was formerly the resistance on the way up in August.

“As far as getting this situation back in full ‘buy’ mode, we need to see the shares get back above the 200 day moving average and the 500p level.”

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