Here’s Why Pearson plc (PSO) Took A Beating Today

The biggest losers of the session on the Wall Street include Pearson plc (NYSE:PSO), which fell -0.65 points or -8.08% to trade at $7.39 as last check. The stock closed last session at $8.04 and sets an active trading volume day with a reported 311692 contracts so far this session. PSO shares had a relatively better volume day versus average trading capacity of 240.19 thousand shares, but with a 0.78 billion float and a -3.13% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for PSO stock indicates that the average analyst price target is $8 per share. This means the stock has a potential increase of 8.25% from where the PSO share price has been trading recently.

Looking at the current readings for Pearson plc, the two-week RSI stands at 26.8. This figure suggests that PSO stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current PSO readings is similarly very revealing as it has a stochastic reading of 19.23% at this stage. This figure means that PSO share price today is being overbought.

Technical chart claims that Pearson plc (PSO) would settle between $8.08/share to $8.12/share level. However, if the stock price goes below the $7.99 mark, then the market for Pearson plc becomes much weaker. If that happens, the stock price might even plunge as low as $7.94 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.33. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Deutsche Bank raised their recommendation on shares of PSO from Sell to Hold in their opinion released on October 21. UBS analysts bumped their rating on Pearson plc (NYSE:PSO) stock from Neutral to Buy in a separate flash note issued to investors on September 13. Analysts at Citigroup released an upgrade from Neutral to Buy for the stock, in a research note that dated back to July 29.