PZ Cussons sinks to a new low, further weakness is expected

PZ Cussons Plc stock (LSE:PZC) has sunk to a new low, plummeting towards the support level at 170.00. The bounce that follows is merely a ruse to deceive impatient bulls.

Price moved in a zigzag mode within the upper and lower Trendlines between October and December 2019, while it eventually moved below the lower Trendline, closing below it. The RSI period 14 is almost below the level 20 (the oversold region), and that shows a notable weakness in the market.

The fact that the market is oversold means that upwards bounces and rally attempts would happen occasionally, but they may not be sustainable because the overall trend in the market is bearish.

It is most probable that PZC would continue going downwards, reaching the support level at 170.00, 160.00 and 150.00.

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