Synergy Healthcare could start a technical downward trend after the rebound in recent sessions.

Fundamentals on the company are strong as shown by the Surperformance ratings. However, the analysts’ consensus is mixed and their average target price offers no potential for the stock. In facts, the target is 7% lower than current prices.

From a technical viewpoint, the proximity of the GBp 1430 medium-term resistance limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than upside.

Due to the technical configuration and a bad fundamental situation that does not justify the current valuation of the group, investors can open a short position close to the GBp 1430 resistance. The price target is set at GBp 1310 and a stop loss will be placed above GBp 1430.