- Summary:
- In this Pershing Square share price preview, we explore why the stock may be about to go higher in the near term after the stellar performance
The Pershing Square share price is rising today as investors react to the company’s monthly disclosures. The PSH shares are trading at 2,615p, which is significantly higher than yesterday’s close of 2,515p. This makes it the best performer in the FTSE 100.
Background: Pershing Square Holdings is a hedge fund started and managed by Bill Ackman. The fund invests in a handful of companies in the United States. Some of the key constituent companies are Chipotle Mexican Grill, Lowe’s, Restaurant Brand International, and Howard Hughes Corporation.
Pershing Square has bounced back after struggling for a few years. It returned a 70% return in 2020 after generating 58.6% in 2019. This performance has brought the total assets under management to more than $17.3 billion. It has also raised a SPAC that is looking to take another company public.
Pershing Square share price is rising after the company released the monthly performance. In February, the fund had a net performance of 8.0%, bringing the total returns this year to 6.6%.
Pershing Square Share Price Forecast
The four-hour chart below shows that the PSH share price has been in a strong uptrend. Along the way, it has formed an ascending channel. In fact, in the past few days, the shares have been rising from the lower side of the channel. Also, the price has moved above the 25-period and 15-period exponential moving averages.
Therefore, in my view, there is a possibility that the shares will rise as bulls target the upper side of the channel at above 2,900p. To do that, it will need to move past the important resistance level at 2,765p. However, a drop below 2,460p will invalidate this price action.
PSH share price chart
