Sage share price has had a good week and it seemed poised to close on a high. The company has made a name for itself in both Europe and the United States by delivering exceptional products. In addition, it offers a subscription model with a client retention rate of over 90%. In terms of finances, the company appears to be in good shape, and revenue generation has traditionally been strong.
An 11% growth in software subscription to £920m supported a 5 percent increase in recurring income to £1.2bn in the first nine months of 2021. In addition, Sage Intacct, the company’s construction-focused accounting software, was largely responsible for the 7 percent increase in North America.
As a result of this success, the company seems determined to leverage this to broaden its grip in North America.
Two days ago, Sage established a new agreement with Procore Technologies. For the last two decades, the Carlifornia-based company has been a leader in construction management software development. The two companies have already developed a new product called Sage Intacct Construction and Procore Connector.
Sage seems to be a good bet for near-term investment. The company’s share price has gained about 17% over the past six months, compared to a disappointing -3.3% over the last five years.
Sage share price is likely to ride on the strong market momentum to rise further in coming days. The RSI is currently on an uptrend and has risen to 52 from 48 in under 48 hours. The MACD line has also recently crossed above the signal line. The two indicators therefore make a strong case for bullishness.
If the bulls sustain the momentum, sage shares could rise to encounter resistance just above the previous ascending channel at 724.4 p. However, if the momentum fizzles out, the price could slide to the first support at 714.4p and possibly to the second support at 706.4. Beyond that point, Sage share price could find their support just below the channel at 700.8p.