Rolls-Royce Holdings plc : A technical correction is coming
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 992 | GBX 0 | GBX 1,029 | +100% |
Over the last 12 months, the great majority of analysts EPS estimates have been downgraded. Moreover, the net income has known a sharp drop in 2014 (-95%).
Graphically, the stock went through a period of rebound in recent sessions towards the GBp 998 medium-term resistance. It could act as a stopping point of the upward movement. Then the share should consolidate near this area. Those characteristics as well the overbought situation argue to establish a short position at the current price.
The first objective will be fixed near the GBp 934.5 short term support. This strategy should be protected by a stop loss set at GBp 1029.