Associated British Foods should undergo some profit-taking after the rebound in recent sessions.

From a fundamental viewpoint, Goldman Sachs keeps a 'sell' position with a target price at GBp 2570.

Technically, the proximity of the GBp 3125 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.

Therefore, the most offensive investors can benefit from the technical configuration to take a short position next to the GBp 3125 resistance. The main objective will be fixed near to the GBp 2760 support. Only the breakdown of this level would open up new bearish targets toward GBp 2600 and 2466. The stop loss will be set above GBp 3125.